The exchange rate is buying €1.093, up from €1.087 earlier this week.
Sterling has climbed back slightly as pressure on the euro mounts.
The Eurozone is expecting an interest rate decision from the European Central Bank (ECB) on Thursday.
Investors have largely speculated that the Bank won’t hike interest rates in this week’s meeting.
Some analysts have warned rates might be kept on hold until 2019.
The looming ECB decision has prevented the euro from reaping the benefits of disappointing UK data.
Britain’s services sector fell to an 11-month low but Eurozone services and retail sales also failed to impress.
Laura Parsons, TorFX currency analyst said: “The GBP/EUR exchange rate bounced back to €1.092 on Tuesday, with the pound recording a fairly solid gain of 0.6 per cent despite a measure of growth for the UK’s services sector falling to an 11-month low.
“Disappointing services and retail sales figures for the Eurozone piled pressure on the euro ahead of this week’s European Central Bank (ECB) interest rate decision, meaning the euro wasn’t able to benefit from concerns about Britain’s economic outlook.
“Sterling managed to hold gains against the euro despite Brexit Secretary David Davis saying the Brexit divorce bill has thrown up ‘significant differences’ between the UK and EU.”
The Tory minister told MPs about last week’s third round of negotiations with the EU’s chief negotiator Michel Barnier and insisted the UK had been “substantially more flexible”.
Addressing the chamber on Tuesday, the politician bashed the Brussels bloc before insisting the Government wanted to maintain a “deep and special partnership” with the European Union.
He said: “We emphasised that the broader principles outlined in the UK’s position paper sought to minimise the type of uncertainty and disruption for business which we’re all working to avoid.
“We remain committed to making as much progress as possible on those issues which are solely related to our withdrawal.”
But he admitted there were “significant differences to be bridged” as he announced further position papers from the UK Government would be released in the coming weeks.
Fresh data out of the Eurozone today stands to influence the exchange rate.
Ms Parsons said: “Today the main cause of GBP/EUR exchange rate movement…