The pound fell after UK inflation data came in lower than expected.

In May, the UK inflation rate remained at 2.8% year-on-year, below the average expectation of 3.0%, causing the pound to fall to a near two-week low against the euro. The core inflation rate increased from 2.5% in April to 2.6%, below the expected 2.7%. Daniela Hathorn of Capital.com stated in a report that this data "diminishes the immediacy" of potential interest rate hikes for the Bank of England. The London Stock Exchange Group's data suggests that the Bank of England will keep interest rates unchanged on Thursday, but the market expects an increase by December. Following the data release, the euro rose against the pound from 0.8645 pounds to a 12-day high of 0.8653 pounds, while the pound fell against the US dollar from 1.3428 dollars to a intra-day low of 1.3409 dollars.