GBP/EUR: Will Eurozone Inflation Pull Euro Lower?

The pound euro (GBP/EUR) exchange rate is holding steady after gains yesterday.

The pound pushed higher despite BoE’s Andrew Bailey sounding cautious over the UK economic outlook, which is bleaker than most other Western economies.

UK Q1 GDP data is expected to confirm the initial reading of 0.8%.

The euro fell yesterday as German inflation slipped lower to 8.2%, from 8.8% YoY, although remains incredibly high. Concerns over stagflation hurt the euro.

Today German retail sales are expected to rebound 0.8% after falling -5.4% in the previous month.

Eurozone unemployment is also in focus.