GBP/EUR: Brexit Fears & ECB Optimsm May Lower Pound vs Euro?

The pound euro (GBP/EUR) exchange rate is falling, snapping a two day losing run.

The risk off mood is hurting the pound as investors look ahead to UK service sector activity data. The services PMI is expected to fall to 48.7 in August, down from 51.5 in July.

The euro is rising despite business activity contracting by more than expected in August. The composite PMI fell to 46.7 down from 48.6 in July. This was worse than the preliminary reading of 47.

The services sector shrank more than expected to 47.9 from 50.9. On Friday the finalized manufacturing PMI was below 50 for a 14th straight month.