EUR/GBP rises amid disappointing UK inflation data

Source Fxstreet
  • EUR/GBP rose to 0.8580, overcoming a key resistance level.
  • Softer UK inflation data suppressed Pound Sterling during Wednesday's session.
  • Markets are strongly considering a cut in September by the BoE.

Wednesday saw the EUR/GBP pair rise towards 0.8580, with softer-than-expected inflation data from the UK weighing on Pound Sterling. This contrasts Tuesday's movements, when the strength of the Pound was elevated by more positive UK employment data as lower inflation figures might prompt a more dovish Bank of England (BoE).

The UK's Office for National Statistics reported that inflation in the UK, measured by the Consumer Price Index (CPI), rose to a yearly 2.2% in July from 2% in June, below the market expectation of 2.3%. Similarly, the core CPI growth decreased to 3.3% down from 3.5% recorded in June. The initial market reaction to these figures resulted in diminished interest in Pound Sterling.

The next policy meeting from the BoE is on September 19, and the market currently estimates nearly a 45% chance of a rate cut.

EUR/GBP technical analysis

The EUR/GBP has shown a general bullish trend in recent sessions. The Relative Strength Index (RSI) of the EUR/GBP pair fluctuates around mid-range values, indicating the bulls are gathering strength and have more way to go. The highest RSI was around 62, hinting toward a slight overbuying presence. The Moving Average Convergence Divergence (MACD) shows steady green bars, confirming the presence of the buyers.

EUR/GBP daily chart

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
ECB Policy Outlook for 2026: What It Could Mean for the Euro’s Next MoveWith the ECB likely holding rates steady at 2.15% and the Fed potentially extending cuts into 2026, EUR/USD may test 1.20 if Eurozone growth proves resilient, but weaker growth and an ECB pivot could pull the pair back toward 1.13 and potentially 1.10.
Author  Mitrade
Dec 26, 2025
With the ECB likely holding rates steady at 2.15% and the Fed potentially extending cuts into 2026, EUR/USD may test 1.20 if Eurozone growth proves resilient, but weaker growth and an ECB pivot could pull the pair back toward 1.13 and potentially 1.10.
placeholder
Gold Price Forectast: XAU/USD rises above $4,600 on US rate cut expectations, Fed uncertainty Gold price (XAU/USD) rises to around $4,600 during the early Asian session on Wednesday. The precious metal gains momentum as traders firm up bets on US interest rate cuts after the release of inflation data.
Author  FXStreet
Jan 14, Wed
Gold price (XAU/USD) rises to around $4,600 during the early Asian session on Wednesday. The precious metal gains momentum as traders firm up bets on US interest rate cuts after the release of inflation data.
placeholder
Gold recovers above $4,100 as traders assess US-Iran conflict Gold price (XAU/USD) rebounds to around $4,120 during the early Asian session on Friday. The precious metal edges higher as traders weigh a resumption of war in the Middle East.
Author  FXStreet
Jul 10, Fri
Gold price (XAU/USD) rebounds to around $4,120 during the early Asian session on Friday. The precious metal edges higher as traders weigh a resumption of war in the Middle East.
placeholder
WTI surges above $74.00 as US-Iran strikes reignite Hormuz risksWest Texas Intermediate (WTI) oil price rises after two days of losses, trading around $74.20 during the Asian hours on Monday.
Author  FXStreet
Jul 13, Mon
West Texas Intermediate (WTI) oil price rises after two days of losses, trading around $74.20 during the Asian hours on Monday.
placeholder
Gold slides back closer to $4,050 as Iran risks and Fed hike bets boost USDGold (XAU/USD) opens with a modest bearish gap at the start of a new week and slides back closer to the $4,050 level during the Asian session.
Author  FXStreet
Jul 13, Mon
Gold (XAU/USD) opens with a modest bearish gap at the start of a new week and slides back closer to the $4,050 level during the Asian session.
Related Instrument
goTop
quote