The euro has dropped and investor demand for eurozone bonds has cooled this morning as early inflation figures from the bloc's largest economy point to price growth falling back from a four-year high this month.
However, the pound's value against the euro continued to move swiftly throughout the day, and sterling is likely to remain volatile over the coming weeks and months as Brexit negotiations get underway.
That's the smallest net short euro position in three years, notes RBC Capital Markets, and the trend is probably not too much of a surprise, given it came in the week when the eurozone composite purchasing managers' index hit a near six-year high.
EUR/USD remains under pressure and has edged lower in the Thursday session. Currently, the pair is trading at 1.0740. On the release front, key releases out of the eurozone and the US could shake up the euro on Thursday. Germany will release ...
Against the euro, the pound climbed by as much as 0.64pc to €1.1595 immediately after formal divorce proceedings began. However, in afternoon trade, it too trimmed its gains, before closing up 0.18pc at €1.1542.
The headlines might have been fixated on the formal start of the UK's exit from the EU but there was perhaps greater interest among market participants in a media report that claimed the European Central Bank's policy intentions had been misinterpreted.