The pound euro (GBP/EBP) exchange rate is falling for a second day.

The pound trades lower after the OECD warned that the UK economy would shrink 0.4% in the coming year and rebound by just 0.2% in 2024.

Inflation is expected to fall slowly across the year to 4.5% by the end of 2023.

UK PMI data is due to be released and is expected to show contraction.

The euro is rising as investors focus on what the ECB are looking to do next. Some policymakers are pointing to a 50 bps hike.

Eurozone PMI data is expected to show a decline in business activity to 47.5 down from 48.2.