The pound-euro (GBP/EUR) exchange rate is rising on Monday, adding to gains from last week.
The pound edged higher as rising oil and gas prices pushed UK gilt yields up, reducing expectations for near-term Bank of England rate cuts.
Oil climbed above $100, and low UK gas storage levels have raised concerns over energy security and inflation, with Chancellor Rachel Reeves warning that higher energy costs could trigger renewed cost-of-living pressures.
The euro weakened after Sentix investor confidence fell sharply into negative territory, reflecting growing concerns over the economic impact of rising energy prices and ongoing geopolitical tensions in the Middle East.