Forex
Home›Forex›Major Pairs›Euro slips from four-week peak versus pound as BoE nea…
Euro slips from four-week peak versus pound as BoE nears
EUR/GBP last traded near 0.8577, with markets focused on Eurozone GDP data and a BoE decision expected to keep Bank Rate at 3.75%.
The euro eased from recent four-week highs against the British pound, with EUR/GBP trading around 0.8577, down from about 0.8585 earlier in the session, while still holding above prior levels, according to FXStreet.
Traders are looking ahead to a batch of catalysts, including Eurozone preliminary GDP and unemployment data. The Eurozone economy is expected to show 0.2% growth in the second quarter after a 0.2% contraction in the first quarter, with year-over-year growth seen rising to 0.5% from 0.3%. Unemployment is expected to remain at 6.2%, and consumer confidence is forecast to modestly improve to -15.9 in July from -17.7 in June.
The main focus is the Bank of England monetary policy decision. FXStreet reports that investors are widely expecting the BoE to leave Bank Rate unchanged at 3.75%, with attention on the number of dissenters and Governor Bailey’s press release for clues on whether tightening could come later.
FX strategists at Rabobank cautioned that the pound could face difficulty if expectations for tighter BoE policy fade, especially alongside increasing domestic political friction. They outlined an upside bias in EUR/GBP toward 0.87 over a three-month view if markets are disappointed by a lack of rate rises this year.