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Euro slips to session lows versus British pound after eurozone inflation
Eurozone preliminary HICP rose to 2.9% year on year in July, while core inflation moved up to 2.5%, as the pair traded around 0.8554.
The euro edged lower against the British pound on Friday, reaching session lows at 0.8554, after eurozone preliminary inflation data for July. FXStreet reports that the Eurozone’s Harmonised Index of Consumer Prices (HICP) accelerated to 2.9% year on year in July from 2.8% in June, meeting market expectations. On a monthly basis, inflation rose 0.2% after a 0.1% contraction in June. Core HICP also increased to 2.5%, compared with market expectations for 2.4%.
Additional details in the release included France’s annual inflation picking up to 2.4% in July from 2.0% in June, above the 2.1% forecast. Separately, German unemployment rose to 6.4% in June from 6.3% in May, with jobless workers increasing to 6K after a 1K drop the prior month, according to FXStreet. On the pound side, FXStreet said the British currency drew some support from the Bank of England’s decision to keep interest rates on hold, with hawkish dissenters and Governor Bailey expressing openness to tightening if the Middle East conflict drives oil above $100 later this year. Even after turning negative on the daily chart, the euro was still described as on track for a 0.2% weekly gain at the time of the update.