The pound euro (GBP/EUR) exchange rate is edging higher after losses yesterday. The pair is set to finish the week modestly lower.
The euro was boosted by the ECB rate decision, where the central bank hiked interest rates by 25 bps to a 22 year high and signaled that there were more hikes to come.
Attention now turns to Eurozone inflation data, which is expected to confirm a slowdown to 6.1% YoY from 7% in April.
The pound has been supported this week by hawkish BoE expectations after strong data this week.
The BoE is expected to hike rates by 25 bps, with more hikes expected in H2.