EUR/GBP Struggles Below 0.8600 Ahead of Crucial UK Inflation Data

The EUR/GBP exchange rate has been stuck in the mid-0.8500s for several days, unable to break through the 0.8600 level despite the European Central Bank's recent decision to raise its three key rates by 25 bps on September 10.

This move took the deposit rate to 2.50%, but it has not had a significant impact on the EUR/GBP pair. The Eurozone economic sentiment gauge fell short of forecasts, and German and Eurozone ZEW sentiment surveys offered little support.

The British pound, meanwhile, has remained resilient despite a softer UK labour release, with claimant count claims rising more than expected in August and employment growth cooling over the three months to July.