The pound euro (GBP/EUR) exchange rate is falling towards €1.1325, a fresh multi-year low.
The pound is falling for a second straight day after weak UK labour market data and reports of a possible plot to oust Prime Minister Keir Starmer.
This adds to political uncertainty ahead of the November 26 budget, where investors expect fiscal tightening as public finances worsen and productivity forecasts weaken.
The euro is rising against the pound but flat versus the dollar after German inflation eased to 2.3% YoY in September from 2.4% in August. The data reinforces expectations that the ECB is done with its rate-cutting cycle.