GBP/EUR: Euro Lower On Fears Italy Will Defy Budget Rules

The pound euro (GBP/EUR) exchange rate is pushing higher at the start of the week, rising above €1.1650.

The pound rallied after Rishi Sunal became Prime Minister and brought a level of calm to the markets.

The BoE is due to make its interest rate decision on Thursday.

The euro fell versus the pound but not the USD last week after the ECB hiked interest rates by 75 basis points.

Today eurozone GDP data is expected to show that the economy avoided recession in Q3 with 0.2% QoQ growth.

Eurozone inflation is expected to cool modestly to 9.8% YoY