The pound euro (GBP/EUR) exchange rate is heading higher for a second day.
The pound is rising despite industry data showing that UK business morale deteriorated in September amid concerns surrounding the upcoming Labour Budget.
The Budget will be released on 30 October and, according to PM Kier Starmer could be “painful” for some as the Chancellor tries to plug a £22 billion black hole.
The euro is falling despite the German trade surplus widening to €22.5 billion as German exports increased and imports fell.
Recent data from Germany have not dispelled concerns that the eurozone’s largest economy could be heading for another contraction.