The pound euro (GBP/EUR) exchange rate is edging lower for a second straight day.
The euro rose yesterday after German IFO business climate data improved for a fourth straight month. The recent strong data points to a growing possibility of the eurozone’s largest economy avoiding a recession.
Eurozone inflation today is expected to confirm the preliminary reading whereby inflation cooled to 8.5% YoY.
The pound drifted lower yesterday amid a lack of fundamental drivers after strong PMI data earlier in the week.
The UK economic calendar is quiet today, instead attention will be on BoE speakers, who could shed some light on where a=rates could go from here.