EUR/GBP Nears Two-Week Highs Amid Cooling UK Services Inflation

The EUR/GBP exchange rate is trending upward, reaching near two-week highs around 0.8570 as the Euro maintains its strength against a weaker British Pound.

This move comes after inflation reports from both economies showed mixed results. The UK's headline Consumer Price Index (CPI) rose to 2.9% in July, matching forecasts, while core CPI held steady at 2.6%. However, a more significant development was the cooling of core services inflation, which eased to 3.4% from 3.6%, limiting Sterling's gains.

In contrast, the Eurozone's final inflation reading for July confirmed headline inflation at 2.9%, unchanged from June and above the European Central Bank (ECB) target. The Euro maintained its footing due to firm price pressure and a print in line with expectations.