The pound euro (GBP/EUR) exchange rate is falling, snapping a two-day losing run.
The pound is falling after UK CPI rose to 3.8% YoY in July up from 3.6% in June and ahead of forecasts of 3.7%.
Near-term BoE rate cut bets faded. However, high inflation could slow growth, resulting in more rate cuts next year. HSBC forecasts rates falling to 3% in Q3 next year.
The EUR is rising across the board despite German PPI recording its steepest fall in 13 months and ECB President Christine Lagarde warning over slower growth in Q3 owing to the fading frontloading effect.
Instead, the EUR benefited from the selloff in the pound and the USD as Trump attacked Fed official Lisa Cook,