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

The pound euro (GBP/EUR) exchange rate is holding steady above €1.1225 after two days of gains.

The pound pushed higher in the previous session after Rishi Sunak re-shuffled his cabinet to support his economic aims and after more BoE policymaker speeches.

The euro fell yesterday after German industrial production fell by more than expected and as investors digested the latest commentary from ECB governing council members.

Commentary was mixed with Joachim Nagel saying that rates are not yet restrictive. Meanwhile, ECB’s Villeroy considers that the bloc is near peak inflation.

Today there is no high impacting euro zone or UK data due to be released leaving sentiment to drive the pair.