EUR/GBP recovers intraday losses ahead of BoE policy decision

EUR/GBP revives intraday losses as BoE policy meeting takes center stage.
The BoE is expected to cut interest rates by 25 bps to 4.75%.
The Euro is expected to remain under pressure due to multiple headwinds.

Sagar Dua FXStreet

The EUR/GBP reverses intraday losses and bounces back to near 0.8330 in the European trading session on Thursday. The cross rebounded strongly after posting a fresh weekly low near 0.8310 ahead of the Bank of England’s (BoE) interest rate decision, which will be announced at 12:00 GMT.

The BoE is widely anticipated to cut interest rates by 25 basis points (bps) to 4.75%. This will be the second interest rate cut by the BoE this year. The BoE initiated the policy-easing cycle in the August policy meeting in which it cut interest rates by 25 bps to 5%, but it kept them steady in the September meeting.

Out of the nine-member led Monetary Policy Committee (MPC), seven members are expected to vote in favor of a rate reduction, while two are expected to support leaving interest rates unchanged at 5%. BoE external MPC member Catherine Mann, an outspoken hawk, is likely to be one of those who would support keeping rates stable.

Investors will pay close attention to BoE Governor Andrew Bailey’s press conference to get cues about the impact of Republican Donald Trump’s victory in the United States (US) presidential elections and United Kingdom (UK) Labour’s firm Autumn Forecast Statement on the inflation and the interest rate outlook.

Though the Euro (EUR) has shown a strong recovery against the Pound Sterling (GBP) ahead of the BoE policy meeting, its near-term outlook remains vulnerable due to multiple tailwinds such as weak Eurozone economic prospects due to Trump’s victory, the collapse of German three-party coalition and expectations that the European Central Bank (ECB) could fasten its policy-easing cycle.

On the economic data front, month-on-month German Industrial Production data for September has come in worse than expected. The Industrial Production declined by 2.5% after expanding by 2.6% in August. Economists expected the data to have contracted by 1%.

(The story was corrected at 14:45 GMT on Thursday to say in the first paragraph that "The EUR/GBP reverses intraday losses and bounces back to near 0.8330 not 0.8300.)

Economic Indicator

BoE Interest Rate Decision

The Bank of England (BoE) announces its interest rate decision at the end of its eight scheduled meetings per year. If the BoE is hawkish about the inflationary outlook of the economy and raises interest rates it is usually bullish for the Pound Sterling (GBP). Likewise, if the BoE adopts a dovish view on the UK economy and keeps interest rates unchanged, or cuts them, it is seen as bearish for GBP.

AUD/USD remains above 0.7200 after China's trade data

AUD/USD sits above 0.7200 in the Asian session on Tuesday, near its highest level since May 14. The US Dollar stays under pressure as a rallying Japanese Yen outweighs support from hawkish Fed bets and geopolitical tensions. This, along with firming expectations for another RBA rate hike later this month, acts as a tailwind for the Aussie. However, mixed China trade balance data keep the pair restricted.

USD/JPY stabilizes at around 154.00 as markets assess BoJ outlook

USD/JPY fluctuates at around 154.00 in the American session on Tuesday after rebounding from the six-month low it touched below 153.00 earlier in the day. Nevertheless, the upside attempts resemble technical corrections for now as Japan's upbeat wage growth data and Q2 GDP revision cement bets on a BoJ rate hike next week and continue to support the Japanese Yen.

Gold trades lower despite weaker US Dollar as Fed hike bets weigh

Gold (XAU/USD) remains on the back foot during American trading hours on Tuesday, even as the US Dollar (USD) remains on the defensive. Rising Oil prices and expectations of a Federal Reserve (Fed) rate hike weigh on the precious metal. At the time of writing, XAU/USD trades around $4,400 after reaching an intraday high near $4,443.

Ripple and Stellar outlook: Hold bullish bias above EMAs as derivatives back upside

Ripple (XRP) and Stellar (XLM) hold above the key support zones on Tuesday, hinting at an upside move. Derivatives metrics further support the recovery, with both altcoins showing positive funding rates and rising long positions. Derivatives data shows a bullish tilt among XRP and XLM traders.

Europe in focus: September 2026

Six major net contributors demanded substantial cuts to the European Commission’s proposed 2028–2034 EU budget. Germany, Denmark, the Netherlands, Austria, Finland and Sweden issued a joint position on 27 August calling for the nearly €2 trillion proposal to be reduced by several hundred billion euros and rejecting additional common EU borrowing.

Diesel’s record $100 warning: The oil shock hiding in plain sight

The Oil market may look calmer than it did a few months ago, but diesel is sending a very different message. The US diesel crack spread, the premium of ultra-low sulphur diesel futures over WTI, recently surged above $100 per barrel for the first time, reaching an intraday record of just over $102.00.