The Pound Euro (GBP/EUR) exchange rate is attempting to claw back some of yesterday’s steep losses.

The mood in the market has improved following fears that China’s Evergrande could be a Lehman’s moment.

Rising sentiment in addition to data revealing that UK public sector net borrowing fell by £5.5 billion year on year has helped underpin the Pound. However, the data from the Office of National Statistics also revealed that interest payments jumped £2.9 billion year on year.

There is no Eurozone data to drive trading in the common currency. Instead investors are looking ahead to Sunday’s elections in Germany.