Euro rises 0.75% against Pound on UK political turmoil
The Euro has rallied for the second consecutive day against the British Pound, reaching fresh five-week highs above 0.8720.
The Pound is being sold across the board due to growing political uncertainty in the UK, following the resignation of the UK Health Secretary.
The UK economic calendar is empty, while European data shows an unexpected slowdown in Italian inflation, easing to 1.6% monthly growth.
The market is reacting with concern to the possibility of a disorderly UK leadership contest and increased government borrowing.