The pound-euro (GBP/EUR) exchange rate is falling for a second day but is set to rise across the week.
The pound rose this week against the euro and saw its strongest performance against the US dollar in three months, helped by relief following the Chancellor’s tax-heavy budget.
With £26 billion in tax rises outlined, the focus now shifts back to data and the BoE, which is widely expected to cut rates in December.
The euro is rising after German inflation unexpectedly rose to 2.6% YoY in November, the highest in nine months,, up from 2.3%.
The data reinforces concerns about sticky price pressures, even as ECB minutes signalled the rate-cutting cycle is likely over.