The pound euro (GBP/EUR) exchange rate is rising for a second straight day, pushing above €1.1550.
The euro is under pressure again as political turmoil in France remains in focus. President Macron has appointed a new Prime Minister, the third in a year. Sebastien Lecornu is tasked with uniting the party to push a budget through.
The ECB is expected to leave rates unchanged on Thursday.
The pound is rising despite concerns over the upcoming Budget, as recent Gilt auctions appear to be going well.
Analysts at Goldman Sachs Investment Bank expect Chancellor Rachel Reeves to implement significant tax increases in the upcoming budget.