Snapshot: EUR/GBP trades 0.8618, down 0.06% on the day, as the Bank of England’s hawkish hold stance continues to underpin Sterling. Two MPC members voting for a hike yesterday injects a hawkish flavour, contrasting with the ECB’s more balanced approach to inflation risks.
- BoE’s 7-2 vote split for a hike to 4% yesterday is the key domestic driver, signalling persistent inflation concerns.
- Watch for any upside surprises in the upcoming US data releases (08:30 ET) which could shift cross-currency dynamics.
Bias into NY: The setup favours a slight downside bias for EUR/GBP as Sterling holds firm on hawkish BoE sentiment. We see resistance at 0.8630, with a break lower targeting 0.8590.