The pound-euro (GBP/EUR) exchange rate is falling after a flat end to yesterday.
The pound is under pressure after UK construction activity contracted for a twelfth consecutive month in December, with the PMI remaining deep in contraction at 40.1, well below forecasts.
The euro is rising even after eurozone inflation eased to 2% YoY in December, in line with the ECB’s target for the first time since August and down from 2.1% in November.
The data reinforces expectations that interest rates will remain unchanged this year while the growth outlook is improving modestly.