The pound euro (GBP/EUR) exchange rate is falling for a second day.
The pound trades lower after UK PMI data raised concerns that the UK economy is heading towards a recession. The composite PMI fell to 47.9 in August, down from 50.8. The dominant service sector PMI dropped to 48.7.
Inflation could cool rapidly, meaning that the BoE could be near peak rates.
The eurozone PMI data was also very gloomy, with business activity dropping to 47 in August from 48.6.
However, service sector inflation and wage growth suggests that the ECB still has some work to do despite recession risks rising.