Ella 
During early European trading on Wednesday, the euro-sterling cross traded higher at around 0.8570. The pound lost traction against the euro following the release of UK consumer price index (CPI) inflation data for July. Investors were awaiting Eurozone second-quarter gross domestic product (GDP) data due later in the day.
Data released by the Office for National Statistics on Wednesday showed that UK CPI increased by 2.2% year-on-year in July, compared with 2.0% in June. The figure was lower than the consensus estimate of 2.3%. Meanwhile, core CPI, which excludes volatile food and energy items, rose 3.3% year-on-year in July, compared with 3.5% in the previous month and below expectations of 3.4%. A weak UK CPI inflation report put some selling pressure on Sterling (GBP) as it sparked expectations of a rate cut by the Bank of England (BOE) in August.
On Thursday, traders will turn their attention to UK second-quarter gross domestic product (GDP), which is expected to show a 1.0% annual increase. On a quarterly basis, gross domestic product is expected to grow 0.6% in the second quarter.
On the euro front, the Eurozone’s second-quarter gross domestic product (GDP) will be released. The Eurozone economy is expected to expand by 0.3% quarterly in the second quarter and 0.6% annually. Lower-than-expected GDP growth data could weigh on the euro (EUR) and limit the downside for EUR/GBP.
