Snapshot: EUR/GBP trades at 0.8647, up 0.02% intraday, with the single domestic driver being the divergence between ECB and BoE stances. UK inflation prints are trending downward while the unemployment rate ticks up. Today’s catalyst will be the 15:00 London BOE Governor Bailey speech.
- Resistance sits near 0.8650, where intraday highs have stalled.
- Watch for any hawkish surprise from Bailey regarding future rate decisions that could weigh on the pair.
Bias into NY: Neutral to slightly bearish, as the BoE remains reluctant to commit to rate cuts given stickier services inflation; a DXY pullback alongside soft US yields could provide a temporary tailwind, but the underlying divergence favours Sterling strength toward 0.8600.