Euro Tumbles Against British Pound on Eurozone Inflation Data

The Euro fell against the British Pound on Friday after the release of Eurozone inflation data for July. The preliminary Harmonized Index of Consumer Prices (HICP) showed a 2.9% year-over-year growth, in line with market expectations.

The Pound drew support from Thursday's Bank of England monetary policy meeting, where three hawkish dissenters suggested the possibility of a rate hike later this year if oil prices exceed $100 due to the Middle East conflict.

Analysts at TD Securities warned that 'other than the vote split, it would appear to us the rest of the committee is still very comfortable keeping rates on hold, given the lack of clear second-round effects observed in inflation data.'