The pound euro (GBP/EUR) exchange rate rose for a third straight day on Wednesday.
The pound rose after hotter-than-expected inflation. CPI rose to 2.6% YoY in November, up from 2.3% in October. Core inflation also rose to 3.5%, which is up from 3.3% and service sector inflation rose to 5.3%.
The market reined in BoE rate cut expectations following the data, boosting the pound.
The euro fell after eurozone inflation rose by less than initially expected in November. CPI rose 2.2% YoY, below the 2.3% in the preliminary reading.
The data supports the view the ECB will continue cutting interest rates, pulling EUR lower.
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