EUR/GBP Hits New Highs Amid Accelerating Eurozone Inflation

The EUR/GBP pair continued its upward trend for a fifth consecutive day, reaching intraday highs around 0.8560 after rebounding from last week's low at 0.8530.

This move came in response to the final reading of Eurozone Harmonised Index of Consumer Prices (HICP) data, which showed that annual headline inflation accelerated to 2.9% year-over-year in July, up from 2.8% in June.

Core HICP, which excludes volatile components, also rose to 2.5% year-over-year in July, compared with 2.4% a year earlier.

The European Central Bank's policy outlook drew further attention after ECB official Olli Rehn stated that 'keeping inflation expectations anchored is essential.'