The pound-euro (GBP/EUR) exchange rate is rising, adding to last week’s gains.
The pound is rising after hawkish comments from BoE policymaker Megan Greene, who suggested rates may remain unchanged until at least March 2025 to curb inflation.
The market is pricing in a 65% chance of a rate cut in February. Markets expect the BoE to hold rates in November. Attention now turns to UK jobs data and a speech from Governor Andrew Bailey tomorrow.
The EUR is falling amid ongoing political uncertainty in France after President Macron reappointed Lecornu as PM and announced his cabinet.
Macron and his PM need to push the Budget through the fragmented parliament.