Snapshot: EUR/GBP trades at 0.8653, down 0.15% on the day, weighed down by diverging central bank outlooks. The BoE’s higher policy rate continues to support Sterling, while the ECB has already begun easing. There are no high-impact UK or Eurozone data releases before the NY close.
- Watch for a break below 0.8648, today’s low, which could trigger further downside.
- Risk lies in any hawkish comments from ECB members later in the session, which could provide a temporary boost to the Euro.
Bias into NY: We favour further EUR/GBP downside towards 0.8620, driven by the persistent yield advantage favouring Sterling given the BoE’s reluctance to signal imminent rate cuts amid sticky services inflation.