The pound euro (GBP/EUR) exchange rate fell after two days of gains
The pound is falling amid a quiet economic calendar. Sentiment is drove the pound lower after riskier assets tumbled as the market mood soured.
Attention is turning to the BoE rate decision next week, where the market sees a 45% chance of a rate cut.
The euro is under pressure after the German IFO business climate unexpectedly fell in July to 87 from 88.6 in June and defied expectations of a rise to 88.9.
The data came after weak German business activity data earlier in the week, which saw business activity in the eurozone’s largest economy contract again.