The pound-euro (GBP/EUR) exchange rate is falling for a second day but is set to rise throughout the week.
The pound is falling after UK retail sales fell -2.3% MoM in April, after falling -0.2% in March. This was below the -0.4% decline expected.
The data suggests that households are struggling despite easing inflation.
The euro is rising amid signs of recovery in the German economy. German GDP rose 0.2% QoQ in Q1.
This came after stronger-than-expected business activity data in May, suggesting that the recovery is continuing into Q2.
Hotter-than-expected wage growth data could provide challenges to the ECB cutting rates further down the line.