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Euro struggles near one-year lows versus British pound
EUR/GBP hovers around 0.8515 as June inflation data from Germany and France cooled, reinforcing expectations the ECB will likely pause at its July meeting.
The euro remained under pressure against the British pound, with the EUR/GBP exchange rate unable to move away from one-year lows around 0.8515, according to FXStreet.
FXStreet cited June inflation figures from Germany and France showing moderating price pressures. Germany’s final HICP rose 2.4% year over year in June, down from 2.7% in May and 2.9% in April, while France’s CPI eased to 2.0% year over year in June from 2.8% in May.
Those developments strengthened expectations that the European Central Bank will likely take a pause at its July meeting to assess how energy market conditions are affecting the euro area economy.
FXStreet also pointed to support for sterling from comments by Bank of England Chief Economist Huw Pill, described as one of two hawkish dissenters, who flagged expectations for upcoming rate hikes.