Euro Edges Higher Amid UK Inflation Data

The euro strengthened against the British pound following the release of UK inflation data for August. The year-on-year headline Consumer Price Index (CPI) rose to 3.1% from 2.9% in July, matching expectations.

Upstream price measures showed even higher growth, with Input Producer Price Index (PPI) accelerating to 6.1% year-on-year from 4.9%, exceeding the 5.4% consensus. Output PPI rose to 3.7% from 3.1%, also above the 3.3% forecast.

Despite this, markets continued to price in a no-change scenario for interest rates at Thursday's Bank of England meeting. The euro's advance was tempered by risk-off sentiment and elevated energy costs, with Brent crude oil holding steady above $100 per barrel amid ongoing tensions in the Middle East.