The Pound Euro (GBP/EUR) exchange rate is rising after hitting a fresh yearly low in the previous session at €1.1873.
The Pound sold off yesterday as market sentiment soured as tension rose between Russia and Ukraine and the riskier pound fell out of favour.
An unexpected decline in business activity in the UK, as Omicron impacted customer facing businesses added to the depressed tone surrounding the pound. The composite PMI fell to 53.4, down from 53.6.
Today attention will turn to UK government borrowing.
The Euro fared better than the pound in the risk off environment. The common currency was also helped by mixed PMI data. Whilst the service sector was hurt by Omicron, the manufacturing sector saw activity ramp up.