The pound euro (GBP/EUR) exchange rate is heading higher after losses yesterday.
The pound is rising after the UK services PMI was upwardly revised in November to 50..9, up from October’s 49.5. With service providers growing, the BoE will be watching for inflationary pressures.
BoE policymakers have pushed back on rate-cut bets in recent speeches.
The euro is falling after business activity was upwardly revised in November to a 4-month high of 47.6, a four-month high, up from October’s 35-month low.
Attention is now turning to PPI which is expected to fall -9.5% YoY in October, down from -12.4% in September.
Weak inflation could fuel rate cut bets, pulling EUR lower.