The pound tumbled on Tuesday after United Kingdom inflation came in softer than expected and quelled speculation the Bank of England would soon raise interest rates.
That was still just 0.2 percent higher on the day. Telecommunication and fruit and vegetable prices pulled down the figure most.
"If you put this into context, employment is continuing to rise across the United Kingdom, industry seems to be gradually picking up and recent announcements by Google, Facebook and Snapchat to base themselves in London (creating thousands of jobs) demonstrates that London is still one of the great business cities of the world".
However, the updated yearly growth estimate is an even better-than-expected 2.2%, keeping investors optimistic about the Eurozone growth outlook.
The Office for National Statistics said workers' total earnings including bonuses rose by an annual 2.1 percent in the three months to June, compared with 1.9 percent in the period to May, boosted by a 27 percent surge in bonus payments in the financial sector.
For the day ahead, macroeconomic data out of the U.S includes industrial production figures for July, August's Philly FED Manufacturing PMI and the weekly jobless claims numbers.
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Looking more long-term the EUR GBP exchange rate markets are likely to become increasingly focused on the economic growth in the Eurozone.
The latest data will continue to dampen expectations of higher inflation and lead to greater doubts surrounding the potential for a Bank of England move to raise interest rates. Prices for clothing, household goods and food propped up the inflation rate. The UK economy is heavily reliant on the consumer, and economists had expected falling real incomes to eventually translate into weak retail sales.
From the Eurozone, finalized July inflation numbers are scheduled for release alongside July's trade figures, which are forecasted to be Euro positive, though core inflation is going to continue to sit well short of the ECB's objective, holding back any prospects of a near-term shift in monetary policy.
While two BOE policy makers backed an increase to keep prices in check at the last meeting, Carney said the uncertainty from Brexit augured to keep borrowing costs unchanged.
Britain's pound recovered from its lowest levels against the euro in ten months on Wednesday after data showed wages rising faster than expected in the three months to June, closing the gap to headline inflation.