EURGBP – Weekly Chart
The EUR v GBP has a big support level in play around the 2022 lows near 0.82.
The EUR v GBP will hear from ECB President Christine Lagarde at 2pm HKT on Monday. That will be followed by the BoE’s Governor Andrew Bailey on Tuesday at 8:45am.
The Bank of England cut its main growth rate last week as it lowered interest rate by a quarter of a percentage point to 4.50%, marking its lowest level since 2023.
That decision to cut was widely expected in financial markets but the growth rate is still an issue for the central bank and the UK government. Despite the negative outlook, the pound was able to hold up against the euro as traders expect a quicker rate reduction from Europe.
“It will be welcome news to many that we have been able to cut interest rates again,” said Bailey. Mortgage holders would agree, but savers will not. Inflation may also subside but due to falling wage or workers’ bargaining power.
The country’s chancellor, Rachel Reeves, said the action would “ease cost of living pressures”.
In the eurozone, the ECB said in a recent paper that the bank has “several” interest rate cuts left before it hits a neutral rate. The EURGBP could move this week as traders digest new comments and a possible timeline.
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