The euro climbed to 0.8533 against the pound after weaker-than-expected UK inflation figures ahead of Thursday’s ECB policy decision.
EUR/GBP advanced to 0.8533 on Wednesday, recovering from a one-year low as mixed UK inflation data weighed on the British pound. The cross extended its rebound after recent declines, supported by softer-than-anticipated price pressures in the UK economy.
UK inflation figures for August showed a modest slowdown, falling short of consensus estimates. The data contrasted with earlier prints, which had suggested persistent price pressures. Meanwhile, traders await the European Central Bank’s policy decision on Thursday, with markets pricing in potential rate adjustments.
The pound’s underperformance against the euro reflected investor caution ahead of the ECB meeting, though broader market moves remained muted.