The pound euro (GBP/EUR) exchange rate is falling for a fourth session.
The pound is under pressure following Chancellor Rachel Reeves’ spending plans, where she spelt out the government’s priorities.
£2 trillion in increased spending means there is limited fiscal headroom and tax increases are likely.
UK GDP data is due tomorrow and is expected to show -0.1% MoM in April.
The EUR is rising despite a weak growth outlook for the region. The French central bank revised the GDP downward by 0.6% this year from 1.1% last year.
The weaker outlook is owing to the indirect impact of Trump’s tariffs.