{
  "id": 639115,
  "title": "Euro trims losses against the British Pound following hot German inflation data",
  "url": "https://urgent.news/2026/08/12/euro-trims-losses-against-the-british-pound-following-hot-german",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-08-12T06:29:12.000Z",
  "source": {
    "name": "FXStreet",
    "slug": "fxstreet",
    "url": "https://www.fxstreet.com/news/euro-trims-losses-against-the-british-pound-following-hot-german-inflation-data-202608120629"
  },
  "original_language": "en",
  "account": "The Euro regained some of its losses against the British Pound on Wednesday as German inflation data surprised to the upside. The EUR/GBP pair climbed above 0.8540, but still struggled to break the previous week's high of 0.8580. In July, Germany's Harmonised Index of Consumer Prices (HICP) rose to 2.8% year-over-year, up from 2.4% in June, primarily due to energy inflation climbing to 7.3% from 2.7% in June. Meanwhile, the British Pound showed resilience as tensions in the Middle East continued to escalate. Iran-backed Houthi militants attacked an Egyptian vessel in the Red Sea, resulting in casualties. Additionally, the US Army engaged in a skirmish with a Panama-flagged cargo ship trying to breach the Iranian port blockade, further impacting oil prices. The Brent Oil barrel surpassed $88.00, a 13% increase from last week's high, contributing to inflationary pressures across Eurozone economies. With the UK market closed on Wednesday, investors focused on the upcoming second-quarter GDP release, due Thursday, for insights into the Bank of England's near-term monetary policy. Analysts from Brown Brothers Harriman expect \"real GDP to rise 0.4% q/q vs. 0.6% in Q1,\" while the BoE anticipates a softer print of \"0.3% q/q as lower household real income growth and tighter financial conditions weigh on domestic demand activity.\" The BoE also forecasts \"consumption growth to ease to 0.3% q/q in Q2 vs. 0.6% in Q1.\" Brown Brothers Harriman warns that the Bank of England's future rate decisions may become more dovish without a GDP beat.",
  "summary": "The Euro (EUR) has picked up from session lows against the British Pound (GBP) on Wednesday as hot German inflation figures have partially offset a mild risk-off sentiment, amid flaring tensions in the Middle East.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "FXStreet",
        "title": "British Pound Sterling borrows its rally from American payrolls",
        "url": "https://urgent.news/2026/08/10/british-pound-sterling-borrows-its-rally-from-american-payrolls",
        "published": "2026-08-10T23:30:33.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}