The pound euro (GBP/EUR) exchange rate tumbles below €1.10 to a fresh two year low.

The pound extends last week’s selloff following the Chancellor’s huge unfunded budget, which raises doubts over the UK’S economic outlook.

The rising possibility that the BoE may take action to shore up sterling, helps the pound off €1.0820 the session low.

The euro is heading higher, but remains weaker versus the USD on recession fears. Eurozone PMI data suggests that the region is already in recession.

German IFO business sentiment is due to show a further deterioration in September.