The pound euro (GBP/EUR) exchange rate is holding steady on Monday, giving up earlier gains.
The pound rose on hopes that the UK would be spared the worst of Trump’s trade tariffs, given the balanced trade between the two countries.
The EUR was under pressure on trade jitters ahead of Trump’s reciprocal trade tariffs on Wednesday, which could hit the EU hard owing to its large trade deficit with the US.
German inflation cooled in March to 2.2% YoY in March from 2.3%. Core inflation also cooled to 2.5% annually.
The data supports the view that the ECB will cut rates again in April.