LONDON (Reuters) – The euro retreated against the pound on Wednesday after data showed euro zone inflation cooled off by more than expected in November, reinforcing the case for a slowdown in European Central Bank rate hikes next month.
Consumer prices in the 19 countries sharing the euro grew by 10.0% after a 10.6% increase in October, well below expectations for 10.4% in a Reuters poll of analysts.
The euro fell 0.25% to a session low of 86.23 pence against the pound, but broadly held on to its gains versus the dollar, rising 0.36% on the day to $1.0365, showing little change on pre-data levels.
Euro zone government bonds were little changed, with the German 10-year yield last up 3 basis points at 1.944%, while European stocks built modestly on the day’s gains, rising 0.6%.
(Reporting by Amanda Cooper and Harry Robertson in London and Danilo Masoni in Milan; Editing by Dhara Ranasinghe)
