The pound euro (GBP/EUR) exchange rate is falling on Thursday.
The pound is falling after UK inflation unexpectedly remained unchanged at 3.8% YoY in September. 8% in September, below forecasts of 4%, as food and beverage prices eased.
The figures eased worries about persistent inflation, lifting expectations of a December rate cut above 70%. The pace of future cuts may hinge on Chancellor Rachel Reeves’ November budget.
The euro is rising despite a quiet economic calendar.
The ECB is not expected to cut rates again anytime soon, supporting the EUR.
Attention shifts to the upcoming PMI data for further clues on the health of the economy.