The pound euro (GBP/EUR) exchange rate is holding steady above €1.1350, after gains yesterday

The pound pushed higher yesterday despite wholesale inflation cooling. PPI fell to 12.4% YoY, down from 13% and below forecasts of 13.9%, pointing to cooling consumer inflation.

There is no high-impacting data today or tomorrow, so attention could turn to the BoE rate decision next week.

The euro came under pressure yesterday as geopolitical tensions with Russia rose and despite improving German business morale.

The German IFO business climate rose to 90.2 up from 88.6, indicating that a recession could be milder than feared.

There is no major data due to be released today. Attention will turn to the ECB rate decision next week.