The pound-euro (GBP/EUR) exchange rate is falling to a monthly low.
The pound is under pressure after UK CPI unexpectedly cooled to 6.7% YoY in August from 6.8% in July and below the 7% forecast. Core inflation eased to 6.2% YoY from 6.9% in July.
The market has lowered its bets for a rate hike tomorrow to 70% from 90% and no longer expects a further rate hike beyond this from the BoE, pulling the pound lower.
The euro is rising despite German wholesale inflation fell -12.6% YoY in August after falling -6% in July.
There are many ECB officials due to speak today, who could shed more light on the future path for interest rates.