EUR/GBP remains depressed below 0.8450 post-UK CPI data

• EUR/GBP remains muted on Wednesday in the European session.
• The euro gains limited on dismal Eurozone data, dovish ECB. 
• UK CPI data fails to trigger a meaningful action for EUR/GBP, EU CPI eyed.

The EUR/GBP cross-currency pair consolidates in a narrow trade band on Wednesday’s European session.  At the time of writing, EUR/GBP is trading at 0.8437, up 0.06% for the day.

The single currency managed to gain a little traction against the British pound, following the UK’s inflation data. The UK’s Consumer Price Index (CPI) came in at 3.1% in September on yearly basis as compared to market expectations of 3.2%. The Producer Prices Index (PPI) came in at 5.9% in September slightly above the market forecast of 5.8%. EUR/GBP remains virtually unchanged on the mixed inflation data.

Investors accelerated their bets on the Bank of England (BOE) rate hikes in November and December respectively. The BOE has forecasted that Britain’s inflation rate will go over 4%, more than double its target.

The European Central Bank’s (ECB) members maintained their dovish stance on inflation and interest rate hikes. ECB Governing Council Member Olli Rehn said that the current inflation is being transitory as there was enough evidence in support of his comments. The core inflation remained subdued.

As for now, traders are waiting for the ECB’s members' speeches, Eurozone Consumer Price Index (CPI)  to gauge market sentiment data.

EUR/GBP technical levels to consider