Forex
Home›Forex›Major Pairs›Euro holds steady vs pound as ECB and BoE policy bets…
Euro holds steady vs pound as ECB and BoE policy bets linger
EUR/GBP stayed near 0.8578 after buyers failed to clear 0.8660, now acting as resistance, as traders weighed Middle East risks and the inflation outlook.
EUR/GBP was little changed on Tuesday, with buyers unable to push the pair above 0.8660, a former multi month support level that is now acting as resistance, according to FXStreet.
At the time of writing, the cross traded around 0.8578 as traders assessed Middle East risks and their potential impact on the monetary policy outlook in the eurozone and the United Kingdom.
FXStreet said crude oil remains elevated amid stalled US Iran efforts to reach an agreement that could end the war and restore shipping through the Strait of Hormuz, keeping inflation risks skewed to the upside.
The outlet added that the European Central Bank has raised interest rates twice this year, lifting the deposit facility rate to 2.50%, while the Bank of England has kept its Bank Rate unchanged at 3.75% for six straight meetings, with markets expecting further hikes but policymakers remaining cautious.
Latest closeWTI crude $93.42 ▲1.1%