The pound-euro (GBP/EUR) exchange rate is falling modestly but holding on to most of yesterday’s gains.
The pound rose yesterday and holds those gains as markets continue to digest Chancellor Rachel Reeves’ autumn budget. Reeves doubled fiscal headroom to £22 billion—well above forecasts—helping keep gilt markets calm. Yields fell, lifting the pound.
Investors are looking past the downgraded 2026 growth and higher inflation forecasts, as well as a record tax burden.
The euro was modestly higher after a slight improvement in German consumer confidence to -23.2, up from -24.1
The ECB minutes signalled the rate-cutting cycle may be over.