Market news
09.05.2024, 05:28

EUR/GBP extends the rally above 0.8600, all eyes on the BoE rate decision

  • EUR/GBP trades on a stronger note for three straight days near  0.8605 on Thursday. 
  • The BOE is anticipated to keep its main interest rate at a 16-year high of 5.25% at its May meeting on Thursday.
  • ECB’s Wunsch said he sees a path for the first-rate cuts this year, although the outlook remains foggy.

The EUR/GBP cross extends its upside around 0.8605 during the early Europen trading hours on Thursday. The cross edges higher for the third consecutive day ahead of the Bank of England (BoE) interest rate decision. Traders are betting the Bank of England (BoE) could cut the interest rate before the European Central Bank (ECB), which weighs on the Pound Sterling (GBP) against the Euro (EUR). 

The Bank of England (BOE) is anticipated to keep its main interest rate at a 16-year high at 5.25% at its May meeting on Thursday. Investors will take more cues from BoE Governor Andrew Bailey's speech about the timing of cutting the interest rate. BoE’s Bailey said last week that rate cuts were in play at future meetings as inflationary risks have eased.

These remarks have prompted the expectation that the BoE will lower its borrowing costs before the ECB, which exerts some selling pressure on the Cable. Research director at XTB Trading Group, Kathleen Brooks, noted that “the market is expecting the first rate cut from the BOE between June and August.” 

On the Euro front, the attention will shift to the ECB Monetary Policy Meeting Accounts on Friday, which might offer some hints about the economic outlook and the interest rate trajectory. The ECB policymaker Pierre Wunsch said on Wednesday that he sees a path for the first-rate cuts this year, although the outlook remains foggy. He further stated that he expects the central bank to cut 50 basis points (bps), but it will depend on incoming economic data.

EUR/GBP

Overview
Today last price 0.8602
Today Daily Change 0.0002
Today Daily Change % 0.02
Today daily open 0.86
 
Trends
Daily SMA20 0.8569
Daily SMA50 0.8561
Daily SMA100 0.8571
Daily SMA200 0.8605
 
Levels
Previous Daily High 0.8618
Previous Daily Low 0.8594
Previous Weekly High 0.8587
Previous Weekly Low 0.8531
Previous Monthly High 0.8645
Previous Monthly Low 0.8521
Daily Fibonacci 38.2% 0.8609
Daily Fibonacci 61.8% 0.8603
Daily Pivot Point S1 0.859
Daily Pivot Point S2 0.858
Daily Pivot Point S3 0.8566
Daily Pivot Point R1 0.8614
Daily Pivot Point R2 0.8628
Daily Pivot Point R3 0.8638

 

 

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