Top Stories
Euro sags against sterling after euro zone inflation cools
Global Banking & Finance Review®
Company
LONDON (Reuters) -The euro retreated against the pound on Wednesday after data showed euro zone inflation cooled off by more than expected in November, reinforcing the case for a slowdown in European Central Bank rate hikes next month.
LONDON (Reuters) -The euro retreated against the pound on Wednesday after data showed euro zone inflation cooled off by more than expected in November, reinforcing the case for a slowdown in European Central Bank rate hikes next month.
Consumer prices in the 19 countries sharing the euro grew by 10.0% after a 10.6% increase in October, well below expectations for 10.4% in a Reuters poll of analysts.
The euro fell 0.25% to a session low of 86.23 pence against the pound, but broadly held on to its gains versus the dollar, rising 0.36% on the day to $1.0365, showing little change on pre-data levels.
Euro zone government bonds were little changed, with the German 10-year yield last up 3 basis points at 1.944%, while European stocks built modestly on the day’s gains, rising 0.6%.
(Reporting by Amanda Cooper and Harry Robertson in London and Danilo Masoni in Milan; Editing by Dhara Ranasinghe)
The euro is the official currency used by 19 of the 27 member states of the European Union, known as the Eurozone. It was introduced in 1999 and is symbolized by €.
Inflation is the rate at which the general level of prices for goods and services rises, eroding purchasing power. It is typically measured by the Consumer Price Index (CPI).
The European Central Bank (ECB) is the central bank for the euro and administers monetary policy within the Eurozone. It aims to maintain price stability and manage inflation.
A currency pair is a quotation of two different currencies, where one currency is quoted against the other. For example, EUR/USD indicates how many U.S. dollars are needed to purchase one euro.
Explore more articles in the Top Stories category
