The pound-euro (GBP/EUR) exchange rate is falling after a flat finish yesterday.
The pound is under pressure as UK government spending surged to £20.7 billion in June, well above the £16.5 billion forecast. Interest payments alone rose to £16.4 billion in June, the third highest since records began in 1997.
The data underscores the challenging outlook for the Chancellor, who is increasingly likely to hike taxes in the Autumn, which could slow already stagnant growth further.
The EUR is rising but gains will likely be limited as investors grow concerned over the lack of a EU-US trade deal ahead of the August 1 deadline.