The pound held its longest run of declines in six months versus the euro before the release of the first U.K. inflation data that cover the period since the country’s decision to quit the European Union.
Sterling, the worst-performing Group-of-10 currency this year, rose for the first time in four days against the dollar. Consumer prices rose 0.5 percent in July from a year earlier, according to the median forecast of economists in a Bloomberg survey. That’s unchanged from the June reading, and below the Bank of England’s 2 percent inflation target, which was last reached in December 2013.
The report will provide insight on whether Britain’s shock vote to leave the world’s biggest trading bloc has prompted a slowdown in the economy, as some purchasing managers’ surveys and estimates have indicated. Traders are also waiting for the release of unemployment-benefit claims and retail-sales data due later this week.
The pound was little changed at 86.95 pence per euro as of 7:33 a.m. London time, holding a six-day decline versus Europe’s shared currency, its longest losing streak since February. It touched 87.03 pence per euro Monday, the weakest level since August 2013. Sterling rose 0.3 percent to $1.2915, after falling to $1.2866 Monday, the lowest level since July 11.
The U.K. currency has borne the brunt of the Brexit decision, falling to a 31-year low versus the dollar last month in the aftermath of the referendum. It also declined after the BOE’s decision this month to cut interest rates and boost monetary stimulus.
