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According to Reuters, the single currency rose by 0.2 per cent versus sterling at 85.48 pence due to speculation a possible interest rate rise by the Bank of England may occur later than first thought.
This comes after figures on Friday revealed the UK economy contracted by 0.6 per cent in the fourth quarter, higher than previous estimates.
Adrian Schmidt, currency strategist at Lloyds, stated the pound is struggling to make any progress.
He added: "It seems there is less belief that rates are going higher after Friday's data, and the market has priced out a rate hike a little, towards June or July."
This comes after the euro ended last week nearly two per cent higher than sterling when it increased to 85.93 pence versus the pound.
And the news provider pointed out this was partly down to "hawkish rhetoric" on eurozone interest rates.
Posted by Greg Secker
