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Euro slips to near June lows versus British pound
EUR/GBP traded around 0.8509, while markets expect the Bank of England to have fully priced in a hike by November.
The euro weakened against the British pound as reduced political uncertainty in the UK and rising expectations for higher Bank of England interest rates kept GBP supported versus EUR, according to FXStreet.
At the time of writing, EUR/GBP was around 0.8509, near its lowest level since June 2025, with the article pointing to renewed attention on oil driven inflation risks amid renewed US and Iran fighting that disrupted supplies through the Strait of Hormuz.
FXStreet said money markets fully price a Bank of England rate hike by November, with a second increase expected by March 2027. The BoE currently holds its Bank Rate at 3.75%, while the ECB raised its Deposit Facility Rate by 25 basis points to 2.25% in June and markets see limited odds of another increase soon.
The piece added that the widening interest rate gap is expected to keep EUR/GBP tilted lower in the near term, and attention is turning to UK data due on Thursday, including GDP and industrial production, for fresh clues on the economic outlook and the BoE rate path.