Snapshot: EUR/GBP trades near 0.8550, little changed on the session. The primary driver remains the diverging paths of the ECB and BoE, with the latter maintaining a hawkish stance despite one dissenter voting for a cut at the last meeting. Focus now shifts to the BoE meeting on Thursday, 8 May.
- BoE’s cautious, data-dependent approach remains the key driver, particularly services CPI near 5%.
- Risk: Unexpected dovish signals from de Guindos this morning at the European Parliament could weigh on the Euro.
Bias into NY: Range-bound, with a slight upside bias towards 0.8580 if UK data continues to signal stickier inflation; broader risk appetite could amplify any Sterling weakness.