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

After three days of losses, the pound euro exchange rate (GBP/EUR) is pushing higher towards €1.16.

The euro is falling as investors continue digesting comments from ECB President Lagarde who sees more work to be done to rein in inflation. She also sees growth slowing.

German inflation is expected to cool from the record high of 11.6% YoY in October to 11.3% in November.

Eurozone consumer confidence data is also due and is expected to confirm the initial -23.9 reading.

The pound is rising in risk on trade and ahead of a speech by BoE’s Andrew Bailey. His appearance comes as investors price in an 85% chance of a 50-basis point rate hike in December.