EUR/GBP retraces losses and approaches Friday's highs, near 0.8730

• The Euro retraces previous losses against the pound and approaches multi-week highs, at 0.8728.
• ECB speakers and Eurozone Consumer Confidence are likely to set the Euro's direction later today.
• Investors' concerns about the UK's public finances keep the Pound under pressure.

The Euro has retraced previous losses against the British Pound during the European Morning session on Monday. The Pair bounced at 0.8710 to return above 0.8720 yet still within the upper area of Friday's trading range.

The focus of the Eurozone will be on the speeches from Bundesbank President, Joachim Nagel, and ECB's board member, Philip Lane, who might give further insight into the banks' monetary policy plans.

Over the weekend, ECB policymakers Martins Khazaks and Edward Scicluna affirmed that the bank's policy is well placed at the moment and that there is no rush to cut interest rates further, which might have provided some support to the Euro.

In between Nagel and Lane's speeches, the European Commission will release September's preliminary Consumer Confidence Index, which is expected to have remained depressed, little changed from August.

In the UK, Retail Sales data released on Friday beat forecasts after the BoE met expectations and stood pat on rates earlier in the week. Investors, however, remain wary about the UK's public finances. UK borrowing hit five-year highs in August, and the market is bracing for tax rises in November's budget. This is keeping the Sterling under pressure.