The pound euro (GBP/EUR) exchange rate is rising, recovering from earlier losses.
The euro is falling after dull economic data. German unemployment rose by 34k, more than the 11k expected. The data comes after a lackluster German consumer confidence data yesterday.
The ECB will likely cut interest rates again in June, which could keep the EUR under pressure.
The pound is rising after Kantar data showed UK grocery inflation rose 4.1% YoY in May. The data comes as UK inflation rose to 3.5% YoY in April, well ahead of the BoE’s 2% target.
A BoE rate cut in June is unlikely, which could limit the downside.