Snapshot: EUR/GBP trades at 0.8667, up 0.21% on the day, boosted by growing expectations of a Bank of England rate cut. The MPC’s cautious stance, despite recent soft CPI prints, contrasts with the ECB’s mild easing bias, driving the divergence. Today’s calendar is light for EUR/GBP.
- A break above 0.8670 would signal further upside potential, targeting 0.8700.
- Watch for any hawkish re-pricing of BoE expectations into the May 8th meeting, which would threaten the rally.
Bias into NY: Mildly bullish on EUR/GBP, targeting 0.8700 as the market prices in a higher probability of a BoE rate cut in the coming months. The ECB’s recent 25bp cut and dovish signals from Lane support Euro strength, even as the DXY holds near 99.00.