The pound euro (GBP/EUR) exchange rate is falling after 3 days of gains.
The pound is falling as the market mood deteriorates following weak US economic data. Still, losses could be limited in the pound as recent data supports the view that the BoE will only cut rates cautiously following strong data last week.
The EUR is rising against the pound and the USD amid a worsening market mood. The EUR benefits from a “sell the dollar” trade.
Still, EUR gains could be limited due to dovish ECB expectations. ECB policymaker Villeroy de Galhau pointed to another 25 bps rate cut next week.