The pound euro (GBP/EUR) exchange rate is edging higher after three days of losses.
The EUR is falling despite eurozone CPI ticking higher to 2% YoY, up from 1.9% in May, returning to the ECB’s 2% target. Core CPI remained unchanged at 2.3% YoY.
The data supports the view that the ECB could pause rate cuts in the July meeting. Several ECB policymakers have suggested that the rate-cutting cycle was almost over.
The pound is rising after UK manufacturing activity contracted at a slower pace in June at 47.7.
Meanwhile, food prices accelerated by the most since March 2024 in June. Food prices jumped 3.7% compared to June last year, up from 2.8%.