The pound-euro (GBP/EUR) exchange rate is rising, snapping a three-day losing streak.
The pound is rebounding amid improving risk sentiment, and falling oil prices support sterling. Hopes of de-escalation in the Middle East have lifted global equities and reduced pressure on energy-sensitive currencies such as the pound.
Lower oil prices are particularly supportive for the UK, given its reliance on imported energy.
The euro is slipping against sterling as markets scale back ECB tightening expectations amid easing energy prices.
While recent ECB rhetoric has turned slightly more hawkish, investors are now pricing in a less aggressive policy response as oil pressures and, therefore, inflationary risks begin to ease.