gbp-british-pound-coin - GBP

The pound euro (GBP/EUR) exchange rate is falling for a straight session.

The pound is extending losses after cooler than expected UK inflation data. CPI fell to 7.9% YoY, down from 8.7% in May. Core inflation also fell by more than expected to 6.9%.

The market has reined in rate hike bets, and now sees a 25 bps hike in August rather than a 50 bps hike.

The euro is rising despite German PPI falling to 0.1% YoY. The data comes after eurozone inflation cooled to 5.5% from 6.1%

Attention now turns to eurozone consumer confidence data which is expected to improve modestly to -16 from -16.1.