Eurozone inflation rises to 2.9% in July, matching forecasts, while core inflation ticks up to 2.5%, pressuring the Euro.
The Euro fell to session lows of 0.8554 against the British Pound on Friday after Eurozone inflation data for July showed a 2.9% year-on-year increase, up from June’s 2.8%. Monthly inflation rose 0.2%, reversing a 0.1% contraction in June, aligning with market expectations.
Core inflation accelerated to 2.5%, exceeding forecasts of a steady 2.4%. Separate data revealed German unemployment rose to 6.4% in June, with jobless numbers increasing by 6K after a prior 1K decline. French inflation also surprised, climbing to 2.4% from 2.0%.
The Pound gained support from the Bank of England’s recent policy decision, where three dissenters favored a hike, and Governor Bailey signaled potential tightening if oil prices exceed $100.