euro-bank-notes - EUR

The pound euro (GBP/EUR) exchange rate is edging lower after gains yesterday.

The euro is rising despite German PPI cooling by more than expected to 7.5% YoY in March from 15.8%. The data comes after Eurozone CPI inflation cooled to 6.9% YoY in March from 8.5%.

The minutes to the March ECB meeting are due today and will be watched for clues over the ECB’s next moves. ECB official Isabel Schnabel said the central bank is considering a 25 bps and a 50 bps hike in May.

The pound rose yesterday after UK CPI cooled by less than expected to 10.1% YoY in March from 10.4% in February. This is the 7th straight month in double digits.

The data fueled rate hike bets with the peak rate now expected at 5%.