The pound euro (GBP/EUR) exchange rate is rising, adding to last week’s gains.
The euro is falling on safe haven outflows as USD demand rises following US-China trade talks at the weekend. The two sides agreed to pause tariffs for 90 days to levels pre-Liberation Day.
Eurozone ZEW economic sentiment and GDP data will be released this week.
The pound is rising as the market mood improves and after comments from BoE Deputy Governor Clare Lombardelli, who warned that risks to inflation remain.
Lombardelli voted to cut rates last week amid signs that inflation is cooling. However, she warned that strong wage growth is not in line with inflation cooling to 2%.