Snapshot: EUR/GBP trades near 0.8520, little changed after mixed Eurozone PMI releases. The key driver remains the divergence in central bank expectations, with the Bank of England seen as less likely to cut rates in the near term than the ECB. All eyes on BoE Governor Bailey’s speech at 16:00 London.
- Watch 0.8500 as a key support level; break could accelerate downside.
- Risk: A hawkish surprise from Bailey could trigger a sharp Sterling rally.
Bias into NY: Short EUR/GBP, targeting 0.8480. The relative hawkishness of the Bank of England continues to weigh on the cross, and firmer US yields are adding to the downside pressure.