The pound euro (GBP/EUR) exchange rate is holding steady around €1.15, a 5-month high.
The euro is unmoved by German CPI data which confirmed that inflation cooled to 7.2% YoY in April, down from 7.4% in March.
ECB chief economist Philip Lane warned that inflation momentum remains high.
The pound is rising boosted by optimism that the UK economy is faring better than feared. A strong of better than expected GDP, services and jobs data has supported GBP.
The BoE is expected to hike rates by 25 bps tomorrow, and with inflation still over 10% could remain hawkish.