Euro Slips to One-Year Low vs Pound as Eurozone Inflation Misses Forecasts

The euro weakened to its lowest level in one year against the British pound on Wednesday, following the release of softer-than-expected Eurozone inflation data. The miss has reduced market expectations for the European Central Bank to deliver another interest rate increase.

Traders are now pricing in a lower probability of further ECB tightening, which weighed on the single currency. The pound benefited from a more hawkish outlook from the Bank of England relative to the ECB.