The pound euro (GBP/EUR) exchange rate is rising towards €1.1650 and is on track for a weekly gain.
The pound is rising after UK services activity grew at a faster pace in December.
The services PMI rose to 52.7, up from 50.9 in November. The robust data supports the BoE’s stance that rates need to remain high for longer.
The euro is falling after eurozone services unexpectedly contracted in December, falling to 48.1 from 48.7. The manufacturing PMI remained weak at 44.2.
The data raises concerns of a recession in the region and doubts over the ECB’s ability to keep rates high for longer.