Snapshot: EUR/GBP trades at 0.8650, down 0.17% intraday, pressured by the diverging policy stances of the ECB and BoE. The ECB’s mild easing bias contrasts with the BoE’s cautious data-dependent approach after holding rates steady at 4.50% at its March meeting. Focus shifts to incoming UK data for further directional cues.
- The 0.8648 level marks the day’s low and acts as immediate support.
- Watch for any hawkish signals from BoE policymakers; comments leaning toward easing could spur a retest of higher levels.
Bias into NY: Downside favored below 0.8660, as the differential between UK and Eurozone interest rates keeps Sterling relatively well supported. We see scope for further Euro weakness absent any clear signals of a pause in the ECB’s easing cycle.