The pound euro exchange rate (GBP/EUR) is falling after losses last week.
The euro is rising despite weaker-than-expected German IFO business climate data, which showed a deterioration of sentiment to 86.7, down from 88.6 from 89.3 in May.
The data came after German PMI data on Friday showed that the economy was losing momentum.
The pound is drifting lower amid a quiet economic calendar.
The pound has been falling away from a 22-month high against the euro after last week’s BoE interest rate decision. The central bank left rates unchanged but signaled to a possible rate cut in August.