The pound euro (GBP/EUR) exchange rate is falling for a third straight day.

The euro rose yesterday after stronger than expected German inflation, which unexpectedly rose to 9.3% in February YoY, up from 9.2% in January.

Today eurozone inflation is forecast to fall to 8.2% YoY from 8.6%. Hotter than forecast inflation mounts pressure on the ECB to hike interest rates.

The pound fell after BoE Governor Andrew Bailey’s remarks raised questions over whether the central bank would hike interest rates again in March after hiking to 4% since December 2021.

Today there is no high impacting UK data. BoE’s chief economist Huw Pill is due to speak.