The pound euro (GBP/EUR) exchange rate is rising for a second day.
The euro is falling after German consumer sentiment plunged to a 9 month low in December.
The GFK consumer sentiment index fell to -23.3 in December from -18.4, below the -18.8 forecast. Confidence has deteriorated amid rising concerns over job security and recession.
Looking ahead, German inflation data is due tomorrow.
The pound is drifting higher amid a quiet economic calendar. The pound remains supported by BoE deputy governor Claire Lombadelli who supports a more gradual stance to rate cuts.