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EUR/GBP STRENGTHENS ABOVE 0.8550 AS UK CPI INFLATION EASES TO 2.2% YOY IN JULY

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  • EUR/GBP gathers gains ground near 0.8570 in Wednesday’s early European session. 
  • The UK annual CPI increased 2.2% in July vs. 2.3% expected. 
  • Investors will keep an eye on the Eurozone Q2 GDP data on Wednesday. 

=The EUR/GBP cross edges higher to near 0.8570 during the early European session on Wednesday. The Cable loses traction after the UK Consumer Price Index (CPI) inflation data for July. Investors await the Eurozone Gross Domestic Product (GDP) for the second quarter (Q2), which is due later in the day. 

Data released by the Office for National Statistics showed on Wednesday that the UK CPI rose 2.2% YoY in July, compared to 2.0% in June. This figure was below the market consensus of 2.3%. Meanwhile, the Core CPI, excluding volatile food and energy items, climbed 3.3% YoY in July versus 3.5% prior, worse than the forecast of 3.4%. The softer UK CPI inflation report exerts some selling pressure on the Pound Sterling (GBP) as it has triggered the expectation of an interest-rate cut by the Bank of England (BoE) in August.


Edited 15 Aug 2024, 18:52

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