The pound-euro (GBP/EUR) exchange rate is falling for a second day.
The euro is rising despite German GDP data showing the economy contracted -0.2% QoQ in the final three months of the year.
The weak data comes as the new Chancellor, Friedrich Merz, starts coalition talks after his Conservative party won the elections at the weekend.
The pound is inching lower after the energy regulator Ofgem raised its domestic price cap to 6.4% from April and after economists predicted UK house prices could grow 3.5% this year.
BoE chief economist Huw Pill is due to speak shortly.