The pound euro (GBP/EUR) exchange rate is ticking lower paring gains from yesterday.
The euro is rising after German consumer confidence improved by more than expected in May to -25.7, up from -29.3, thanks to rising optimism over increased wages.
Hawkish ECB officials have said that the central bank will consider a 25 and 50 bps hike in May.
The pound comes under pressure amid a lack of fresh fundamental drivers.
Yesterday data showed that the government spent £13 billion less than expected, opening the door to tax cuts ahead of the next general election.