The pound euro (GBP/EUR) exchange rate is slipping lower after yesterday’s gains.
The euro looks ahead to retail sales data, which is expected to fall -0.2% MoM in July, down from 0.3% in June.
With inflation around the ECB’s target level, the central bank is not expected to cut rates next week.
The pound is slipping as the market continues to weigh up the fiscal position of the UK along with comments from BoE Governor Andrew Bailey.
Bailey reiterated that it sees slow, gradual rate reductions, although the timing remains unclear.