Snapshot: EUR/GBP is trading around 0.8510, down 0.15% on the session, driven primarily by diverging central bank outlooks. The BoE’s reluctance to cut rates amidst sticky services inflation contrasts with the ECB’s mild easing bias following their recent 25bp cut. Focus shifts to potential hawkish signals from BoE speakers today.
- Key support at 0.8500, a break of which opens up a test of the monthly lows.
- Watch for any surprise upside revisions to final UK PMI data due at 09:30 BST that could fuel further Sterling strength.
Bias into NY: Short EUR/GBP below 0.8520 targeting 0.8480. The BoE’s data dependency keeps the door open for hawkish surprises while the ECB seems more comfortable with further easing, amplifying the divergence play.