Neutral
EUR/GBP rises to 0.8556 as UK inflation cools, reducing BoE rate hike expectations.
Over the past 24 hours, EUR/GBP has climbed to 0.8556, influenced by a cooling UK inflation rate, which diminishes the likelihood of an immediate Bank of England rate hike. This shift has led to a bearish repricing of sterling's rate path, with the euro holding steady against the pound.
Key points
- UK June CPI eased to 2.6%, reducing pressure for a Bank of England rate hike.
- Euro remains steady as euro-area GDP contracted by 0.2% in Q1 2026.
- Market anticipates the Bank of England will keep interest rates unchanged at 3.75% on Thursday.
Sources
AI-generated from public news sources. Not financial advice.
