The pound euro (GBP/EUR) exchange rate is falling for a fifth straight day, dropping below €1.19 to a 2-month low.
The euro is rising against the pound and the USD amid hopes of political stability in France. PM Francois Bayrou puts forward budget plans one month after entering his new role.
The French CAC has jumped 1%.
The pound extends its selloff across the board amid ongoing concerns over the rising cost of government borrowing and sticky inflation.
UK inflation data is due tomorrow and is expected to rise to 2.6% YoY in December.