The pound-euro (GBP/EUR) exchange rate is rising for a second day.
The euro is under pressure after French inflation cooled to 0.6% YoY a 4.5-year low. The data supports the view that the ECB will cut rates again in June.
Trump delayed 50% trade tariffs on the EU until July 9th on hopes of a quick resolution to US-EU trade troubles.
The pound is rising after last week’s stronger-than-expected retail sales and hotter inflation data. Grocery inflation rose to 2.8% YoY in May.
The data suggest the BoE will be less inclined to cut rates again soon. The BoE—ECB divergence lifts the pair higher.