The pound euro (GBP/EUR) exchange rate is rising after steep losses last week.
The pound fell last week amid concerns over the UK government’s ability to exert control over the fiscal backdrop as well as stagflationary forces.
A report by Deloitte showed that large firms were cutting the pace of hiring at the fastest rate since the pandemic.
The euro is falling against the pound and the USD after dovish comments from ECB chief economist Philip Lane.
Lane warned that inflation could fall below the central bank’s 2% target if rates stay high for too long.