GBP/EUR: Will Eurozone Inflation Pull Euro Lower?

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

UK retail sales fell by -0.9% MoM in March, by more than the -0.5% expected as inflation stays above 10% and interest rates high.

UK PMI data is due shortly and is expected to confirm service sector growth of 52.9.

The euro is rising after business activity grew at a faster pace than expected in April. The composite PMI rose to 54.4 up from 53.7. The level 50 separates expansion from contraction.

The data comes after ECB President Christine Lagarde said that the central bank still had work to do to tame inflation.