The pound euro (GBP/EUR) exchange rate is rising towards €1.1750 after 2-days of losses.
The pound is rising as data showed that the UK government borrowed more than expected in July. Public sector net borrowing was £3.1 billion, $1.8 billion more than in the same period last year.
The data highlights the challenges that the new Chancellor, Rachel Reeves, is facing ahead of the Autumn Budget.
The euro is falling amid a quiet economic calendar but rose to a 2024 high against the USD.
Attention is turning to tomorrow’s business activity data (PMIs) which will show how the economy is holding up after the ECB cut rates