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EUR/GBP nears two-week high as UK core services inflation cools
The move follows UK CPI and euro-area inflation prints, with core services inflation easing to 3.4% and the euro-area reading holding at 2.9% for July.
EUR/GBP moved higher on Wednesday, trading near the two-week high area around 0.8570 as the euro firmed against a softer British pound, pushing the pair out of its recent range.
The latest UK inflation data showed headline CPI rising 2.9% year over year, in line with forecasts at 2.6% prior, while core CPI held at 2.6%, slightly above expectations. Core services inflation, the gauge the Bank of England watches most closely, eased to 3.4% from 3.6%, which limited Sterling’s upside after the release.
On the euro side, the final euro-area reading confirmed headline inflation at 2.9% for July, unchanged from June and above the European Central Bank target. With price pressure steady, the euro maintained its footing versus GBP.
Technical factors also supported the bid, with EUR/GBP around 0.8572 and holding above the 20-period and 100-period moving averages on the 4-hour chart, while RSI near 68 pointed to momentum that could risk a short-term pause near recent highs.