The pound euro (GBP/EUR) exchange rate is heading higher after losses last week.

The euro trades under pressure after Russia cut gas supply through the Nord Stream 1 pipeline indefinitely, deepening the energy crisis. European gas prices jump 30%.

Eurozone composite PMI data shows that business activity slowed by more than forecast to 48.9 down from 49.9 in August.

The pound trades modestly higher versus the euro back steeply lower versus the USD ahead of the announcement of the new British Prime Minister.

Liz Truss is expected to win. However the market is fretting over her plans to cut tax to boost the economy, which could add to inflationary pressures.