Cooling UK services inflation weighs on Sterling, lifting EUR/GBP near a two-week high despite higher headline CPI.
EUR/GBP climbed toward 0.8570, a two-week peak, as the Euro strengthened against a softer British Pound. The move followed July inflation data showing UK services inflation eased to 3.4% from 3.6%, below the Bank of England’s key gauge.
UK headline CPI rose to 2.9% year-over-year, matching forecasts, while core CPI held at 2.6%, slightly above expectations. Euro-area inflation remained steady at 2.9%, reinforcing the Euro’s resilience amid persistent price pressures.
Global bond yields remained elevated, though US Treasury yields retreated ahead of the Federal Reserve’s FOMC minutes, which may reveal dissent over rate hikes.