The pound euro (GBP/EUR) exchange rate is rising on Friday towards €1.15 and is set to book a weekly gain.
The pound is being lifted by stronger than expected UK consumer confidence, which rose to -44, from -47. A rebound in retail sales to +0.6% MoM, after falling -1.5% MoM in September, is adding to the upbeat mood.
The euro is under pressure after ECB President Christine Lagarde said that the risk of a recession is rising.
She also said that the ECB would likely need to raise interest rates higher in order to tame inflation.
Inflation rose to 10.6% YoY, a record high and up from 9.9% in September.