The pound euro (GBP/EUR) exchange rate is rising towards €1.14.
The pound is rising ahead of tomorrow’s UK budget, where major tax increases are expected to plug a £30 billion hole.
A credible plan is needed to maintain bond-market confidence.
Investors will also watch for measures that may slow growth and inflation, potentially clearing the way for a Bank of England rate cut next month.
The euro is under pressure after German GDP stagnated in Q3 at 0% QoQ, following a -0.3% contraction in Q2. The German economy has seen only 2 quarters of growth in 3 years.
Data yesterday showed business sentiment weakened, though Berlin is set to approve the 2026 budget this week.