The pound euro (GBP/EUR) exchange rate is rising for a fifth straight day and trades at a 3-week high.
The euro is under pressure after German GFK consumer confidence unexpectedly deteriorated in February to -22.4, down from -21.4. Economists had forecast a rise to -20.
The ECB is expected to cut interest rates by 25 bps tomorrow despite stalling growth and inflation close to the 2% target.
The pound is rising after PM Kier Starmer’s upbeat remarks about growth and ahead of Chancellor Rachel Reeves’s speech, in which she will outline initiatives to boost growth.