The pound euro (GBP/EUR) exchange rate is falling, extending last week’s losses.
The euro rises after manufacturing activity improved for a fifth straight month, rising to a 3-year high. The manufacturing PMI rose to 49.4 in May from 49 in April.
Gains in the EUR could be limited ahead of this week’s ECB rate decision, in which the central bank is expected to cut rates by 25 bps.
The pound is falling after data showed ongoing weakness in the manufacturing sector. The UK manufacturing PMI was 46.4 in May compared to 45.4 in April.