ExchangeRates.org.uk - The Pound Euro (GBP/EUR) exchange rate drifted higher on Wednesday following the publication of the UK’s latest consumer price index (CPI).The Pound (GBP) saw a modest increase against the majority of its peers on Wednesday as the British currency was bolstered by the publication of the UK’s latest inflation data.
The country’s latest index, measuring inflation in October, came in hotter-than-expected on Wednesday, buoying Sterling sentiment in the wake of the release.
Headline inflation rose from 1.7% to 2.3%, ahead of a more modest 2.2% expectation, while core inflation edged higher from 3.2% to 3.3% rather than remaining at 3.2% as predicted.
This served to severely dampen Bank of England (BoE) interest rate cut bets for December, with the odds of the central bank leaving its rate unchanged next month at almost 100%, which bolstered GBP exchange rates.
The Euro (EUR) struggled to garner investor attention on Wednesday, and dipped against several of its counterparts, as a lack of economic data hobbled the single currency during mid-week trade.
However, further weighing on EUR exchange rates on Wednesday was a strengthening US Dollar (USD), on the back of the currency’s negative correction.
As Russia-Ukraine tensions continued to spook markets, investors opted for the US Dollar, leaving the Euro on the back foot.
GBP/EUR Forecast: Eurozone Data in the Spotlight?
Looking forward, the primary driver of movement for the Pound Euro exchange rate looking ahead to Thursday will likely be the pblication of some economic data from qithin the Euroone.
Tomorrow afternoon, the Bloc will release its latest consumer confidence index for this month which could see EUR exchange rates slip should the data confirm another below average consumer sentiment reading.
Furthermore, several European Central Bank (ECB) policy members will be delivering speeches on Thursday which could infuse further volatility into the Euro should any of the central bank officials deliver any dovish commentary.
Turning to the Pound, the only publication of note will come in the form of some mid-tier UK data, the latest CBI industrial trends orders.
Could another negative reading weigh on Sterling towards the end of the week?
This content was originally published on ExchangeRates.org.uk