GBP/EUR: Will UK Inflation Data Pull Pound Lower vs. Euro?

The Euro US Dollar (EUR/USD) exchange rate is trading -0.3% slipping through US$1.18 to a weekly low of US$1.1774.

The Fed didn’t move on monetary policy, as expected. It indicated that interest rates would stay near zero until through 2023. However, the Fed also disappointed that market by not hinting towards further stimulus. The US Dollar surged in risk off trading, whilst stocks tumbled lower.

The Euro is trading on the backfoot owing to US Dollar strength. The Euro will look ahead to inflation data. The headline CPI inflation figure is due to confirm a -0.2% decline in inflation.