The pound euro (GBP/EUR) exchange rate is rising for a second day.
The pound is edging higher against the euro but remains near a one-month low versus the US dollar ahead of Bank of England Governor Andrew Bailey’s testimony. Markets expect a March rate cut following softer UK data, including rising unemployment, slower wage growth, and cooling inflation.
Political attention is also on the Manchester Gorton and Denton by-election, seen as a key test for Prime Minister Keir Starmer.
The euro is under pressure amid tariff uncertainty and a quiet economic calendar, with upcoming German GDP and CPI figures unlikely to shift ECB policy expectations.