The pound euro (GBP/EUR) exchange rate is rising, building on gains from last week.
The euro is under pressure after German trade data revealed a shrinking trade surplus, falling to €15.9 billion, from €18.7 billion.
Attention now turns to ECB President Christine Lagarde who is due to speak later. Investors will be looking for clues over whether the ECB will hike again later this month.
The pound is rising amid a risk on market mood. However, gains could be limited. Data on Friday showed that UK manufacturing activity tumbled in August, raising concerns over a recession.
Meanwhile the BoE is likely to continue hiking rates as inflation is high.