Euro Falls As ECB Cuts Interest Rates

Pound (GBP) licks wounds following UK CPI

The pound (GBP) was mixed yesterday as a lack of new data left GBP investors to dwell on Wednesday's consumer price index.

While Sterling was able to rally from its lowest levels, the prospect of more interest rate cuts from the Bank of England (BoE) meant GBP failed to recoup the bulk of its post-inflation losses.

Sterling is rallying this morning after the latest UK retail sales figures beat forecasts. Sales growth increased by 0.3% in September, rather than contracting 0.3%, suggesting that the UK economy is stronger than anticipated.

Euro (EUR) slips as ECB lowers borrowing costs

The euro (EUR) fell yesterday as the European Central Bank (ECB) delivered its third interest rate cut of the year.