The pound euro (GBP/EUR) exchange rate is inching higher on Tuesday after losses yesterday.
The euro is looking towards inflation data which is expected to confirm CPI held at 5.5% YoY in August and core inflation cooled to 5.3% from 5.5%.
The data comes after ECB governing council member Peter Kazimir said that the ECB may need until spring to conclude that no more hikes are needed.
The pound is rising despite the BoE deputy governor Sam Woods saying that the British banking sector is seeing a rise in impairments owing to rising interest rates.
The BoE is expected to raise interest rates again on Thursday.