EUR/GBP steadies around 0.8550 as investors await ECB’s Lagarde, Brexit NIP supports
|- EUR/GBP is hovering around 0.8550 ahead of ECB Lagarde’s speech and Germany’s HICP.
- Investors may find insights about APP conclusions and growth forecasts.
- Germany’s HICP is seen at 7.8, in line with the prior figures.
The EUR/GBP pair is trading back and forth in a narrow range of 0.8535-0.8578 in the Asian session. Investors are focusing on the speech from European Central Bank (ECB)’s Christine Lagarde, which is due in the European interval.
The speech from ECB’s Lagarde is expected to dictate over concluding the Asset Purchase Program (APP), which is likely to kick-start from the third quarter of this year. The ECB chair stated in her last monetary policy announcement that a rate hike is not on the list till the APP gets terminated. Apart from the APP, ECB’s Lagarde could dictate the growth forecasts, which have surely been trimmed amid the Ukraine crisis. The ongoing discussion of an embargo on Russian oil by Europe is gaining momentum. However, the announcement of an embargo could have multiplier effects on employment and other related catalysts.
Apart from Lagarde’s speech, investors will also keep Germany’s HICP on the radar. The yearly HICP is expected to land at 7.8%, in line with the prior figure. A higher-than-expected figure could weaken the euro bulls.
On the pound front, the delay in decision-making over the Northern Ireland Protocol (NIP) weighs on the sterling. The spokesperson from the UK administration said Johnson urged them to deliver for the people of Northern Ireland. "We want to fix some of the underlying challenges" regarding the NIP, the spokesperson added.
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