The pound euro (GBP/EUR) exchange rate is rising towards €1.1775.
The euro is under pressure after data showed the composite PMI, a good gauge for business activity, fell to 50.5 in April, down from 50.9 in March. This pointed to a slowing economy.
Germany’s Merz failed to secure enough voted to become Chancellor, with 310 of the 316 votes needed.
The pound is rising despite data showing the services PMI fell to 49.0 in April, down from 52.5 in March. UK service sector activity saw the steepest slowdown since October 2022.
The data comes ahead of the BoE rate decision this week, in which the central bank is expected to cut rates by 25 bps to 4.25%.
