Pound Drops vs. Euro on Brexit Fears & Weak Manufacturing Data

The pound euro (GBP/EUR) exchange rate rising above €1.16, gaining for a third straight day.

The euro is falling after weaker than forecast German retail sales and manufacturing activity data.

The retail sales slumped -2.5% MoM in October after rising 0.9% in September and the German manufacturing PMI was downwardly revised to 46.2 in November.

The pound is pushing higher ahead of UK manufacturing PMI data which is expected to confirm the preliminary print of of 46.2.

Meanwhile inflation in the UK shows few signs of slowing as food inflation rose to 12.6%.