The pound euro (GBP/EUR) exchange rate is rising for a third straight day.
The euro is under pressure amid growing political instability in France whereby PM Michel Barnier’s government may not survive until Christmas.
The government will need to soften spending cuts to avoid a vote of no confidence. However, a moderate budget could threaten France’s financial stability.
The pound is rising despite CBI data showing that UK service sector sentiment fell at the fastest pace in two years after Finance Minister Rachel Reeve’s Budget.
The majority of the £25 billion tax burden has been imposed on businesses, catching form off guard.