The pound euro (GBP/EUR) exchange rate is rising after two days of losses.
The pound is edging higher after stronger-than-expected UK inflation data.
Headline CPI rose to 3.4% in December, above forecasts of 3.3%, while core inflation held steady at 3.2%. One-off factors drove the increase, with services inflation cooler than forecast at 4.5%.
BoE rate-cut expectations remain unchanged after the data.
The euro is slightly lower after President Trump’s Davos speech, as Greenland remains in focus. While tariff threats persist, a more conciliatory tone from Trump eased immediate concerns.
ECB President Lagarde is due to speak shortly.