The pound euro (GBP/EUR) exchange rate is heading higher extending gains from yesterday.
The pound is rising ahead of UK labour market data which is expected to show that unemployment remained steady at 3.8% in May, close to a 60 year low. Wages are also expected to tick higher to 4.3%, but in real terms this is still a wage cut given high inflation.
The euro is under pressure as energy security concerns linger. Today all eyes are on eurozone inflation which is expected to confirm the 8.6% record high earlier print. Hotter than expected inflation could lift the euro.