EUR/GBP consolidates below 0.8650 ahead of BOE meeting
- EUR/GBP prints mild gains in the Asian session.
- Improved economic readings in the Eurozone undermines the cross.
- Investors await BOE meeting and Eurozone retail sales data.
The euro’s appreciative move against its counterpart pushed EUR/GBP higher in the Asian session. The cross is hovering in a narrow trading range ahead of the important data release in the Eurozone and the Bank of England interest rate decision and policy meeting.
At the time of writing, the EUR/GBP cross is trading at 0.8637, up 0.06% on the day.
The move is exclusively sponsored by the upcoming events in the UK, where the Bank of England (BOE) interest decision, and the Scottish election, which will keep the volatility higher and could dampen the sentiment around the sterling on any negative outcome.
The UK economy showcases signs of recovery with the latest string of economic data, which sparks the speculation that BOE might be opting for tapering measures at the May 6 meeting. Tapering measures would eventually mean raising of interest rates in the near future and if that happens, it would be slightly negative for the sterling in terms of the opportunity cost.
On the other hand, the euro is racing ahead of the British pound after initial hiccups in the vaccination program, and the latest PMI indicates improved economic conditions in the Old continent.
As for now, the pair is expected to pose consolidated moves, awaiting fresh trading impetus on the outcome of the events.
EUR/GBP additional levels
Author
Rekha Chauhan
Independent Analyst
Rekha Chauhan has been working as a content writer and research analyst in the forex and equity market domain for over two years.
