The pound euro (GBP/EUR) exchange rate is falling, extending losses from last week.
The euro is gaining after the manufacturing PMI was revised higher to 46 in October, up from 45 in September. German manufacturing PMI also improved from a very weak base to 43 in October. The level 50 separate expansion from contraction.
The pound is falling after losses last week, as the market still seems unimpressed with the Lsbour Budget, which was unveiled last week.
Higher taxes, borrowing, and investment are set to be inflationary but may not lead to growth, which is why the pound has fallen.
The BoE is set to cut interest rates on Thursday by 25 basis points.