This morning sees the release of PMI (Purchasing Managers Index) data for both the U.K and the Euro Zone, Europe stepping up first at 09:00 and the U.K following shortly after at 09:30am.
I would imagine whoever performs the better of the two should gain ground on the other, however the market moves on rumour as well as fact so this really depends on what was initially predicted and how much the releases differ.
At 10:00am the final big release of the day for this currency pairing, European Retail Sales which will show just how many people hit the shops in the Euro Zone and will once again be a key indicaition as to how things are picking up. A positve release should bring strength to the Euro as it means people are dipping into their pockets again which can only be seen as healthy.
All of this may be hampered by another rating downgrade for Portugal on their bonds which has knocked the Euros slightly in early morning trading.
