The pound – euro (GBP/EUR) exchange rates are rising, recovering from yesterday’s falls.
The pound is rising as the market mood is buoyant due to optimism about a trade deal, following the agreement between the US and Japan.
The pound rises despite domestic concerns as private sector pay settlements remain at 3% in the three months to June.
The euro is falling despite reports that the US and the EU are set to agree to a trade deal that would see tariffs of 15% on EU imports into the US.
The ECB rate decision is tomorrow, where policymakers are expected to leave rates unchanged at 2%.