Euro Gains Against Pound After Mixed UK Inflation, ECB Decision Looms

The euro strengthened against the British pound on Wednesday, supported by a mixed UK inflation report that weighed slightly on sterling. The EUR/GBP pair was trading near 0.8533, extending its recovery from the previous session's more-than-one-year low.

Traders are now focusing on the upcoming European Central Bank decision, which could provide further direction for the pair. The UK inflation data showed a mixed picture, failing to give the pound a clear boost and allowing the euro to gain ground.