The pound euro (GBP/EUR) exchange rate is falling for a second day, dropping below €1.20.
The pound is falling despite BoE’s Megan Greene’s hawkish comments, who said that the central bank should be cautious about cutting rates too fast.
Instead, the pound fell on concerns over the upcoming Budget, where the Chancellor is expected to cut taxes.
The euro is rising despite rising recession worries after a slew of weak German data. The IFO business climate dropped more than expected.
Looking ahead, attention turns to German GFK consumer confidence, which is expected to rise modestly in October.