The Pound Euro (GBP/EUR) exchange rate is falling after small gains yesterday.

The pound is trading lower despite a rise in CPI inflation to 9.1% YoY in May, up from 9% in April. Core inflation rose a less than expected 5.9%, down from 6.2% in April.

The data adds pressure to the BoE to continue hiking rates even as the UK appears to be heading towards a recession.

The euro is rising today, as investors look ahead to eurozone consumer confidence data. Expectations are for morale to improve slightly even though inflation is at a record high.