The exchange rate has climbed to €1.112, the highest pound to euro levels seen all month.
Sterling has been buoyed by encouraging data out of the UK this week.
Inflation figures beat expectations and unemployment is low, both factors which have positively influenced the exchange rate.
The data has also placed increased pressure on the Bank of England to raise interest rates.Related articles
GETTYPound euro exchange rate: Sterling is performing well ahead of a BoE interest rate update
GBP/EUR stabilised ahead of the Bank of England (BoE) interest rate decision
Though it’s widely speculated today’s policy meeting will result in keeping the historic low rate on hold, some analysts believe the vote might swing in favour of a rise.
Any hawkish comments from key policymakers will likely benefit the pound and in turn weaken the euro.
TorFX currency analyst Laura Parsons said: “After surging in reaction to the UK's climbing inflation figure earlier in the week, GBP/EUR briefly gave up some of its gains as average