The pound euro exchange rate is falling, snapping a three day winning run.
The euro fell yesterday despite more hawkish ECB commentary after governing council Kazaks said that he saw no reason to pause or halt the hiking cycle after March.
Today German inflation data is in focus and is unexpected to rise into double digits again in January after falling in recent months.
The pound rose yesterday after the NIESR said that the UK could avoid a recession in 2023 with 0.2% growth, although this was downwardly revised from 0.7% in November.
There is no high impacting UK data due to be released, so sentiment will likely influence the pound.