Ella 
EUR/GBP fell modestly around 0.8560 in early European trading on Friday. Traders are awaiting UK monthly employment data due next Tuesday.
The Harmonized Index of Consumer Prices (HICP) in Germany rose 2.6% in July from the same period last year, according to data released by the German statistics office Destatis on Friday. This data is in line with market expectations. The HICP inflation rate remained unchanged at 0.5% monthly, compared with the previous value of 0.5%.
European Central Bank (ECB) policymaker Olli Rehn said on Wednesday that the ECB could continue to cut interest rates if policymakers are confident that inflation trends will slow in the near term. The European Central Bank stayed on hold at its July meeting. European Central Bank President Christine Lagarde told the Coast Conference that the issue of any action in September was still undecided.
On the other hand, Pound Sterling (GBP) will be affected by expectations of a rate cut from the Bank of England (BOE) in the absence of top-level economic data. The Bank of England last week cut its benchmark interest rate to 5.0% from a 16-year high of 5.25%. The Bank of England signaled that it would take a cautious approach as it normalizes policy.
