Snapshot: EUR/GBP is trading softer near 0.8430, down 18 pips on the day, as Sterling catches a bid following the Bank of England’s decision to hold the Bank Rate at 3.75%. Today’s price action is entirely driven by the 12:00 BST MPC policy announcement and the Governor’s subsequent pooled broadcast interview, which signaled no rush to ease policy.
- The BoE’s 8-1 vote split to maintain rates at 3.75% highlights lingering concerns over UK core CPI ticking up to 2.6%, keeping the policy divergence skewed against a dovish ECB that already cut its deposit rate to 2.50% in April.
- For the NY session, look for immediate support at 0.8415; any broader risk-on flows stemming from the US 08:30 ET data could accelerate the descent toward the psychological 0.8400 handle.
Bias into NY: We hold a tactical bearish bias targeting 0.8410, as the BoE’s hawkish hold maintains Sterling’s yield advantage over the Euro, with US dollar direction after the 08:30 ET print serving as a secondary driver for cross-rate volatility.