The pound euro (GBP/EUR) exchange rate is rising snapping a 5-day losing streak as it heads towards €1.19.
The pound is rising after UK CPI unexpectedly cooled to 2.5% YoY from 2.6%. Economists had forecast a rise to 2.7%. Service sector inflation eased to 4.4% from 5%, which will be well received by BoE policymakers.
The data eased inflationary fears in the UK, pulling gilt yields lower and lifting GBP. However, concerns over weak growth remain. UK GDP data is due tomorrow.
The euro is falling against the stronger GBP but rising against the USD.
Eurozone industrial production was weaker than expected and dovish commentary from ECB policymakers keeps the EUR under pressure.