Pound Slips as Eurozone Inflation Pressures Mount

The Pound to Euro exchange rate declined on Thursday as evidence of inflationary pressure in the Eurozone weighed on Sterling.

The GBP/EUR rate was trading at around €1.1628, down from its opening levels, following the release of the Eurozone's producer price index (PPI) data.

Eurostat figures showed a 1.6% increase in factory gate prices in July, exceeding forecasts for a 1.3% rise and reversing June's decline.

The strong PPI reading strengthened expectations that the European Central Bank could maintain its tightening bias beyond next week's interest rate increase.