The pound euro (GBP/EUR) exchange is rising for a sixth straight day towards €1.1875.
Hopes of closer relations with the EU boost the pound as PM Kier Starmer met with German Chancellor Olaf Scholze.
A treaty of cooperation is expected to be signed early next year, deepening ties in culture, business and technology.
The euro trades under pressure after a series of weak data this week.
German inflation data is due tomorrow and is expected to cool to 2.1% YoY down from 2.3%.
Cooling inflation and a slowing economic outlook could result in the ECB cutting rates in September.