The pound-euro (GBP/EUR) exchange rate is flat on Monday after no change last week.
The euro is unchanged even as German producer prices jumped 2.5% MoM, up from -0.5% in February, supporting the view that the ECB could hike rates twice this year.
The pound was steady against the euro but fell versus the US dollar on Monday as markets tracked Middle East tensions and reacted to Prime Minister Keir Starmer’s parliamentary speech. UK inflation remains high and is expected to rise further amid energy shocks. S&P Global’s UK sentiment index dropped to a 33‑month low, while oil prices surged 6% as the Strait of Hormuz stayed closed.
Attention now turns to upcoming UK jobs, inflation, and Eurozone PMI data.