The pound euro (GBP/EUR) exchange rate is rising for a second day.
The euro is weaker after eurozone retail sales stagnated in October at 0%, below forecasts of 0.1% MoM, signalling cautious consumer spending, with declines in Germany and France and flat readings in Spain.
The pound is rising as markets digest a Bank of England Business Report, compiled before the chancellor’s budget. The survey of 2,000 firms showed expected price increases of 3.7% over the next year, slightly higher than in October, while employment is projected to decline modestly.
Rising labour-market concerns and UK inflation easing to 3.6% support speculation of a December rate cut.