The pound euro (GBP/EUR) exchange rate is rising for a second day and is on track to gain across the week.
The pound is rising despite the BoE cutting interest rates by 25 basis points to 4%. However, the 5-4 vote was closer than expected, resulting in the market pushing back further rate cut expectations.
Huw Pill, Chief Economist at the BoE, voted against a cut, warning that wage-setting behaviour was changing.
The EUR is under pressure amid a quiet economic calendar. Yesterday’s data showed that German trade surplus narrowed to €14.9 billion, its lowest in 8 months.
Attention is also on Ukraine-Russia developments.