The Pound Euro (GBP/EUR) exchange rate is driving higher for a third day this week. The pair trades at €1.1278 a 3 month high.
The moves in the pair is a Euro weakness story. The Euro has failed to find a bottom since inflation data earlier in the week revealed that inflation had unexpectedly turned negative. Today the Euro could come under further pressure as service sector activity in both Spain and Italy is expected to be downwardly revised into contraction in August.
The Pound trades broadly lower versus its major peers on Brexit woes. BoE Governor Andrew Bailey and Service Sector PMI figures will be in focus.