The pound euro (GBP/EUR) is rising for a second day.
The pound is rising after mixed UK inflation data showed CPI at 3.3% in March, driven by higher fuel costs, while core inflation eased to 3.1%.
This supports expectations that the Bank of England will hold rates next week, despite markets pricing in potential hikes later this year. Weak labour conditions and rising energy costs may keep policy on hold longer.
The euro is under pressure as oil prices climb above $100, despite Donald Trump announcing a ceasefire, with ongoing disruption in the Strait of Hormuz limiting supply relief.
ECB policymakers Simkus doesn’t see a rate hike this year.