The pound euro (GBP/EUR) exchange rate is holding onto yesterday’s losses, hovering around €1.17.
The pound is unchanged despite UK inflation cooling by less than expected to 3.4% YoY from 3.5%. UK service sector inflation eased to 4.7% down from 5.4%.
While this is a move in the right direction, it is unlikely to shift the needle for the BoE, which is expected to keep interest rates unchanged at tomorrow’s meeting.
The EUR is flat at a 3-week high versus the pound as Eurozone CPI confirmed 1.9% YoY, down from 2.2% in April.
The data comes after the ECB cut rates in June for an eighth time, but rate cuts could be paused in the next meeting.