The pound euro (GBP/EUR) exchange rate is edging higher after losses yesterday.

The pound fell despite UK wage growth accelerating at the fastest pace outside of the pandemic, piling pressure on the BoEt o keep hiking rates.

UK inflation data today is expected to be 10.9% YoY, only just off the 40 year high of 11.1%. Hot inflation will support a hawkish central bank stance.

The euro rose yesterday after German economic morale rose to its highest level since the start of the Ukraine war as inflation shows signs of easing.

Eurozone industrial output data is due today and is expected to slow in October.