The pound euro (GBP/EUR) is rising after losses yesterday, rising €1.1525.
The pound is rising despite the UK government’s borrowing reaching a 5-year high in September.
Government borrowing totaled £99.8 billion between April and September, £7.2 billion above forecasts and £11.5 billion higher than last year, posing a major challenge for Chancellor Rachel Reeves ahead of next month’s budget.
UK CPI data due tomorrow, expected to show inflation rising to 4% YoY, up from 3.8%.
The EUR is under pressure amid fragile political stability in France.
Recent comments from ECB President Lagarde pointed to a cautious stance on further rate cuts, given inflation is close to the target.