Euro Holds Ground vs Pound as Traders Await UK GDP Report

The Euro has steadied against the Pound Sterling on Wednesday, trading flat near the 0.8540 zone after two consecutive declines.

The Pound briefly hit a two-week high earlier in the day but retraced following the release of the German Consumer Price Index (CPI), which showed inflation remained sticky in July.

The Bank of England left its key rate unchanged at 3.75% at its early-July meeting, with three of the nine MPC members pushing for a 25 basis-point hike due to inflation risks skewed to the upside on higher energy prices tied to the conflict in the Middle East.

The UK Gross Domestic Product report is set to be released on Thursday, and economists expect growth of 0.4% QoQ in the three months to June, down from 0.6% in the first quarter.