The pound euro exchange rate (GBP/EUR) has risen for a seventh straight day, reaching a monthly high.
The euro fell after German inflation cooled more than expected to 1.9% YoY, down from 2.3% in July. This, combined with the deteriorating outlook for the German economy, raises the chances of the ECB cutting rates in September.
Tomorrow eurozone inflation data is expected to show inflation eased to 2.2%.
The pound has risen on bets that the BoE will leave rates unchanged until November.
Yesterday PM Sir Kier Starmer visited Germany and agreed closer cooperation to reset EU-UK ties.