The pound-euro (GBP/EUR) exchange rate is falling after gaining yesterday.
The pound is falling despite hotter than expected UK CPI inflation, which rose to 3.6% YoY, up from 3.4%. This marked the highest level since early 2024.
Attention is now turning to UK jobs data tomorrow, which could be more significant after BoE policymakers have highlighted concerns over the weakening labour market.
The euro is rising but gains could be capped as investors await news on EU-US trade talks.
Trump has threatened 30% tariffs on the EU if a deal is not reached beforehand, which could slow the economy substantially.