Snapshot: EUR/GBP is trading near 0.8535, slightly lower on the session. The hawkish undertones from the Bank of England, underscored by the 8-1 vote split at the last meeting, are weighing on the cross. Focus shifts to any remarks regarding the near-term outlook.
- A break below 0.8520 could open the door to further downside.
- Watch for any comments from BoE officials that might clarify their rate path ahead of the next meeting on May 8th.
Bias into NY: We see further downside risk for EUR/GBP as long as the BoE maintains its cautious stance; a test of 0.8500 is likely. While the ECB is likely to ease further, the BoE’s reluctance to commit to cuts should continue to support Sterling, with broader dollar strength providing only a secondary tailwind.