The pound euro (GBP/EUR) exchange rate is falling on Monday after gains last week.
The pound is falling as weak UK retail data highlights fragile consumer demand ahead of the Bank of England rate decision.
CBI retail sales dropped to a record low of -68 in April, while firms raised price expectations, signalling persistent inflation pressures.
The BoE is expected to hold rates this week as it assesses the impact of the Iran conflict. Meanwhile, the euro is rising despite weak sentiment in Germany, with confidence hitting a multi-year low amid higher energy costs.
Attention now turns to upcoming inflation data and the European Central Bank meeting for policy signals.