The pound euro (GBP/EUR) exchange rate rose on Friday and is rising across the week.
The euro fell on Friday despite eurozone inflation rising to 2.3% YoY down from 2% in the previous month. Core CPI eased to 2.7% from 2.8% but remains sticky.
The data saw the market rein in 50 basis point rate cut bets. The market is now pricing 38 basis points worth of cuts in December. This means there could be a strong reaction of the ECB cut by 25 or 50 basis points.
The pound rose on Friday despite the BoE warning over the potential impact of trade barriers on the global economy.
The pound rose across the week supported by expectations that the BoE will cuut rates more slowly than the ECB.