The pound -euro (GBP/EUR) exchange rate is falling for a second day.
The pound is under pressure after UK retail sales fell 0.4% MoM in February, signalling weaker consumer spending even before the Iran conflict added to economic uncertainty.
The data suggests the UK economy entered this period of turbulence on a weak footing, with rising oil prices now expected to push inflation higher later this year.
Consumer confidence has also dropped to a one-year low.
The euro is gaining against sterling but weakening versus the dollar. In the eurozone, Spain’s inflation accelerated sharply in March to 3.3% YoY, reinforcing expectations that the ECB may need to tighten policy if price pressures persist.