The pound-euro (GBP/EUR) exchange rate is falling for a third straight day and is set to decline 0.7% this week.
The pound is falling despite upbeat UK retail sales and business activity data. Retail sales rose 0.5% MoM in September, beating forecasts of 0.2% and marking a fourth monthly gain.
Strong PMI and consumer sentiment data signal resilience despite inflation at 3.8% and a weakening jobs market.
The euro is rising as the eurozone Composite PMI rose to 52.2 in October, defying expectations of a fall to 51. This marked the tenth monthly expansion, reaching a 17-month high.
Germany’s strong service-sector growth reached a 2.5-year high.