The EUR/GBP pair goes down to about 0.8720 in the early part of the European trading session on Wednesday.
The UK's CPI inflation increased to 3.4% compared to the previous year in December, up from 3.2% in November.
ECB's Lagarde mentioned that the newest Trump tariff threats might make it harder to control inflation and could affect the economy's future in the years ahead.
The EUR/GBP exchange rate drops close to 0.8720 in the early European trading session on Wednesday. The British Pound (GBP) increases slightly against the Euro (EUR) following the release of the UK Consumer Price Index (CPI) inflation data. Traders are now looking forward to the UK Retail Sales report for December, which is set to be published later on Friday.
On Wednesday, the United Kingdom's Office for National Statistics released data showing that the country's main measure of inflation, the CPI, increased by 3.4% compared to the same month last year. This is higher than the 3.2% increase seen in November. The figure was also higher than what experts had predicted, which was 3.3%. When looking at the core CPI, which doesn't include the fluctuating prices of food and energy, the rate rose to 3.2% compared to the previous month, matching the expected 3.2%.
Additionally, the UK's monthly CPI inflation increased to 0.4% in December, up from a drop of 0.2% in November. Markets expected a rise of 0.4%. The Pound Sterling saw some buyers react quickly to the higher UK CPI inflation data.
European Central Bank President Christine Lagarde said on Tuesday that there is more uncertainty now because of the new tariff threats from US President Donald Trump. She mentioned that if Trump takes action against European countries, it could affect the ECB's predictions about inflation and economic growth in the years ahead. At the same time, ECB official Francois Villeroy de Galhau said any new tariffs should be carefully looked at, and he thinks their effect on prices will probably be small.
The UK's December retail sales data will be the main focus on Friday. If the results are better than expected, it might help the Pound Sterling rise and make other currencies weaker in the short term.
The UK's CPI inflation increased to 3.4% compared to the previous year in December, up from 3.2% in November.
ECB's Lagarde mentioned that the newest Trump tariff threats might make it harder to control inflation and could affect the economy's future in the years ahead.
The EUR/GBP exchange rate drops close to 0.8720 in the early European trading session on Wednesday. The British Pound (GBP) increases slightly against the Euro (EUR) following the release of the UK Consumer Price Index (CPI) inflation data. Traders are now looking forward to the UK Retail Sales report for December, which is set to be published later on Friday.
On Wednesday, the United Kingdom's Office for National Statistics released data showing that the country's main measure of inflation, the CPI, increased by 3.4% compared to the same month last year. This is higher than the 3.2% increase seen in November. The figure was also higher than what experts had predicted, which was 3.3%. When looking at the core CPI, which doesn't include the fluctuating prices of food and energy, the rate rose to 3.2% compared to the previous month, matching the expected 3.2%.
Additionally, the UK's monthly CPI inflation increased to 0.4% in December, up from a drop of 0.2% in November. Markets expected a rise of 0.4%. The Pound Sterling saw some buyers react quickly to the higher UK CPI inflation data.
European Central Bank President Christine Lagarde said on Tuesday that there is more uncertainty now because of the new tariff threats from US President Donald Trump. She mentioned that if Trump takes action against European countries, it could affect the ECB's predictions about inflation and economic growth in the years ahead. At the same time, ECB official Francois Villeroy de Galhau said any new tariffs should be carefully looked at, and he thinks their effect on prices will probably be small.
The UK's December retail sales data will be the main focus on Friday. If the results are better than expected, it might help the Pound Sterling rise and make other currencies weaker in the short term.
