EUR/GBP remains below 0.8350 amid German PPI data release
EUR/GBP remains below 0.8350 after German PPI data EUR/GBP could face challenges amid dovish sentiment surrounding the ECB. German PPI fell 1.4% YoY in September, extending the decline from the previous 0.8% decline.
Lower inflation prices increase the likelihood of the BOE implementing a total interest rate cut of 50 basis points in 2024. EUR/GBP held steady after the release of the German Producer Price Index (PPI), trading around 0.8330 during early European hours on Monday.
Producer prices fell 1.4% year-on-year in September, extending the decline from the 0.8% decline in the previous two months. On a monthly basis, the PPI fell 0.5%, marking the first decline since February. The decline beat expectations for a 0.2% decline and swung from a 0.2% increase in August.
The euro faces challenges as the European Central Bank (ECB) decided to cut interest rates by 25 basis points last week. This can be attributed to a significant drop in inflation, which fell to 1.7% in September, now below the ECB's 2% target.
Source: FXStreet
