The pound euro (GBP/EUR) exchange rate is rising towards €1.15, adding to gains last week.
The pound is strengthening as market sentiment improves despite ongoing uncertainty in the Middle East.
Oil prices initially surged after the U.S. blockaded Iran’s ports but have since eased, helping stabilise markets.
Expectations for further tightening from the Bank of England are supporting sterling, although Governor Andrew Bailey has cautioned against overly hawkish expectations.
Meanwhile, the euro is under pressure amid concerns about Germany’s growth outlook, as higher energy costs and geopolitical risks delay the recovery, with upcoming data and European Central Bank signals in focus.