The pound euro (GBP/EUR) exchange rate is falling after two days of gains.
The pound is falling as UK inflation cooled by more than expected. UK CPI eased to 2.6% YoY, down from 2.8% in February. On a monthly basis, CPI eased to 0.3% in March from 0.4%.
The data supports the view that the BoE could cut rates by 25 basis points in May.
The EUR is rising, benefiting from a sell-off in the USD amid ongoing uncertainty surrounding US trade tariffs and the US-China trade war.
Eurozone inflation eased to 2.2% YoY in March. The ECB is expected to cut rates at the meeting tomorrow.