Pound Sterling retains a bullish tone against the Euro, although the rally risks a setback during the early stages of the week as German election results are digested.
The Pound-to-Euro exchange rate is expected to trend towards a new three-year high in the coming months amidst ongoing support from elevated UK interest rates.
Pound Sterling's outlook against the Euro is bolstered by the release of an above-consensus UK inflation reading that limits the scope for further Bank of England rate cuts.
Pound Sterling faces a busy calendar in the coming week that can ignite some welcome volatility against the Euro.