GBP/EUR: Pound vs. Euro Affected By German Politcal Consessions

The pound euro (GBP/EUR) exchange rate is rising over €1.1450, recovering from losses in the previous session.

The pound is rising after Rishi Sunak becomes the new Prime Minister, replacing Liz Truss after 44 days of chaotic rule.

Yesterday the pound fell after UK PMI data fell to a 21-month low of 47.2 in October, down from 49.1.

The euro is falling ahead of German IFO business climate data, which is expected to show a fall from the two year low in October to 83.3, from 84.3. Rising energy costs for industry and a weaker consumer are hitting confidence.

The data comes following German PMI data yesterday saw business activity fall to a 29 month low, adding to evidence of a deep recession.