The pound euro exchange rate (GBP/EUR) is falling after gains yesterday.
The pound is under pressure after data from the British Retail Consortium showed that shop price inflation eased 0.6% in April, down from 0.8%.
UK shadow Chancellor also gave a speech ruling out new tax rises beyond those already announced.
The euro is rising as German wholesale prices rose 0.4% MoM in April, up from 0.2% in March.
The ECB’s consumer inflation expectations survey also showed a cooling to 2.9% from 3%. The survey supports the view that the ECB will cut rates in June.
It is less clear whether the central bank will cut rates again in July.