The pound euro (GBP/EUR) exchange rate is falling on Monday after three weeks of gains.
The pound is edging lower as the post-budget relief rally fades. While the Chancellor’s budget was received better than expected, upside may be limited ahead of UK GDP data and next week’s BoE meeting, where a 25 bp rate cut is widely expected.
The euro is rising after eurozone investor confidence data improved, rising to -6.2 from -7.4. Expectations had been for a rise to -7.
Germany’s index fell to its lowest since April, signalling a recession.
The currency is also supported by hawkish ECB comments suggesting the next move could be a rate hike.