The pound euro (GBP/EUR) exchange rate is rising, adding to last week’s gains.
The euro is falling amid growing expectations the ECB will cut rates again in June.
This week Eurozone inflation data is expected to show CPI cooled to 2% and growth is expected to remain stagnant and 0.2% QoQ.
Weak growth and at-target inflation give the ECB reason to cut rates by 25 basis points further in June.
The pound is rising despite signs that confidence in the UK economy has deteriorated sharply among British people.
The deteriorating outlook comes amid Trump’s tariff turmoil and after the labour Budget in October increased the tax burden on firms.