The pound euro (GBP/EUR) exchange rate is heading higher, recovering from yesterday’s losses.
The pound is rising after UK CPI unexpectedly remained at 6.7% YoY in September, unchanged from August, and above forecasts of 6.6%. Higher petrol prices offset a fall in food prices.
The data highlights the BoE’s struggle to bring inflation back to 2%. The market is pricing in a 30% probability of a November hike.
The euro looks to eurozone inflation data, which is expected to confirm 4.3% YoY, down from 5.2%. Cool inflation would support the view that the ECB has reached the end of its hiking cycle.
ECB President Christine Lagarde is due to speak later.
