EURGBP rebounds after better than forecast euro area CPI figures

The EURGBP rebounded on Monday to hit a fresh high of 0.7246 after a report showing euro area inflation fell slower than economists’ forecast in February.

Data released today showed that eurozone consumer prices were 0.3 percent lower last month, while analysts had penciled in a 0.5 percent drop.

The euro also took advantage of the strong PMI manufacturing data from Germany and Italy, while the advance in UK PMI could not help the pound.

Britain’s Purchasing Managers’ Index (PMI) climbed to 54.1 in February, compared to 53.1 in January, higher than analysts’ forecast of 53.5.

The movement of the pair is likely to be largely shaped by this week’s ECB meeting in Cyprus, which will give more details about the bank’s quantitative easing program.

Meanwhile, the EURGBP is trading around 0.7278, where the session’s low was hit at 0.7237.