The pound euro (GBP/EUR) exchange rate is falling after modest gains yesterday.
The EUR is rising ahead of a key vote in Germany on fiscal reform. This is expected to pass, and it will mean defence spending is not included in the debt limit. It also establishes a €500 billion infrastructure investment plan.
The German ZEW economic sentiment improved considerably in March, rising to 51.6, up 26 points from February.
The pound is drifting lower amid a quiet economic calendar. Attention is on the BoE rate decision later this week.
Chancellor Rachel Reeves is expected to announce a cut in welfare spending ahead of next week’s Spring Statement.