The Pound Euro (GBP/EUR) exchange rate tumbled to a 10 week low yesterday and is set to lose 1.5% this week.
The pound came under pressure after the BoE raised interest rates by 0.25% but warned that the UK is heading for recession. The prospect of high inflation and stalling growth hit the pound hard.
There is no high impacting data due today.
The euro rose despite German factory orders falling -4.7% MoM amid the fallout from the Russian war.
ECB’s Holzmann said that the central bank would discuss raising interest rates at the June meeting, but would likely be agreed in the July meeting.