Pound Drops vs. Euro on Brexit Fears & Weak Manufacturing Data

The pound euro (GBP/EUR) exchange rate is heading higher for a second day.

The euro remains out of favour as German industrial production rose 0.3% MoM in April, less than the 0.6% forecast.

This comes after an unexpected fall in German factory orders in in April and a steep contraction in manufacturing PMI data.

There is no more data due today. Investors will look ahead to ECB speakers for further clues on monetary policy.

The pound is drifting higher despite UK house price data showing that house prices fell for the first time in May since 2012. High interest rates and weak confidence is hitting the sector.