The euro-pound exchange rate finished at 0.8374 on Oct. 22, ending a brief move toward 0.8400 as UK inflation and expectations for higher interest rates shaped the market backdrop.
Investing.com’s daily data show EUR/GBP traded between 0.8370 and 0.8395 before closing 0.15% lower. FXStreet quoted the pair at 0.8390 in a morning update. The outlet described the previous day’s low near 0.8370 as a 17-month trough and said the pair had fallen more than 2.7% from late-September highs.
The European Central Bank’s daily reference rate was 0.83825 pounds per euro on Oct. 22, down from 0.84028 the day before. The fixing is a separate measure from intraday trading prices. EconoTimes covered the euro’s Oct. 21 reference rate against the pound in an earlier report.
The Office for National Statistics (ONS) said annual Consumer Prices Index inflation rose to 3.5% in September from 3.1% in August. Transport, especially motor fuels, exerted the strongest upward pressure on annual inflation, while restaurants and hotels provided the largest downward offset. ONS estimated that gross domestic product grew 0.1% in August and 0.7% over the three months through August compared with the preceding three-month period.
Reuters reported that market pricing pointed to at least three quarter-point Bank Rate increases by April, with the first expected at the Bank of England’s Nov. 5 meeting. That was a market expectation, not a policy commitment. The Bank’s schedule lists Bank Rate at 3.75% and confirms the Nov. 5 meeting; no increase had been announced.
Reuters also reported that concerns over French public finances weighed on the euro and that French bond yields reached 24-year highs on Oct. 22. It described the rate gap as an incentive for carry trades, in which investors borrow in a lower-yielding currency such as the euro to invest in a higher-yielding one such as sterling.
FXStreet’s technical analysis placed resistance near 0.8400 and 0.8430, with support around 0.8373, 0.8355 and 0.8320. Its four-hour Relative Strength Index had moved higher from oversold territory but remained below 40; the outlet disclosed that AI assisted its analysis. The next Bank of England policy meeting is Nov. 5, followed by scheduled UK GDP and inflation releases on Nov. 12 and Nov. 18.
