The pound euro (GBP/EUR) exchange rate is falling on Monday, after booking neither gains or losses last week.

The pound is falling as recession fears rise as the energy crisis deepens. The 80% jump in the Ofgem energy price cap will intensify the cost of living crisis. Goldman Sachs cuts the UK GDP outlook.

The euro is rising after hawkish ECB comments over the weekend. ECB policy makers reiterated their commitment to raising interest rates even in the case of a recession.

There is no high impacting eurozone data today. Eurozone inflation data will be the key focus this week and is expected to reach a new record high.