EUR/GBP (euro/British pound sterling)

Higher bond yields would usually support the country’s currency, but there are fears that the rising costs needed to support UK government debt could lead to further tax increases or spending cuts, hindering the chances of an economic recovery. Markets "continue to function in an orderly way" and movements in government borrowing costs were being driven by "a wide range of international and domestic factors," he added.

Inflation below target suggests that the cycle of loosening will probably continue up to summer 2025.

US traders are looking to the Federal Reserve's interest rate decision, as well as key inflation data later on in the week.

The move by sites such as Booking.com, Kiwi and Kayak led to Ryanair slashing prices on some flights in a bid to fill seats.