The pound euro exchange rate (GBP/EUR) is falling after yesterday. The pair is set to fall across the week.

The pound has dropped after public inflation expectations for the coming 12 months fell to 3%, a two-year low, and down from 3.3% in November.

The data, along with slowing wage growth, relieves pressure on the BoE as it continues to fight inflation, which is double the 2% target.

The BoE rate decision is next week. No change to policy is expected.

The euro is rising despite ECB policymaker Ollie Rehn confirming that the central bank has started to discuss rate cuts.

ECB President Christine Lagarde signaled to a June rate cut last week.