The pound euro (GBP/EUR) exchange rate is falling, giving back yesterday’s gains.

The euro is rising despite German GDP showing the eurozone’s largest economy contracted -0.2% QoQ in Q4. This marked the second straight quarterly contraction, which is a recession.

Eurozone GDP data is due shortly and is expected to show that the economy tipped into recession at the end of 2024.

The pound is falling as investors continue assessing when the BoE could start to curt interest rates.

Grocery inflation cooled to 6.8% and the BRC showed shop price inflation eased to its lowest level since May 2022.