EUR/GBP trims losses below the mid-0.8500s, the upside seems limited amid BoE's hawkish guidance

EUR/GBP attracts some buyers near 0.8531 in Friday’s early European session.
The Bank of England (BoE) kept interest rates unchanged and softened its stance about when rates would be cut.
The Eurozone annual inflation eased to 2.8% YoY in January from 2.9% in December.

Lallalit Srijandorn FXStreet

The EUR/GBP cross gains ground below the mid-0.8500s during the early European session on Friday. Nonetheless, the upside of the cross seems limited. The Bank of England (BoE) held rates steady at its January meeting on Thursday, and BoE Governor Andrew Bailey said more evidence of inflation is needed before lowering rates. At press time, the cross is trading at 0.8531, gaining 0.03% on the day.

On Thursday, six out of nine members of the BoE’s Monetary Policy Committee voted to keep rates at a 15-year high of 5.25%. During his speech, UK central bank Governor Andrew Bailey stated that the BoE needs to see more evidence that inflation is on the course of the 2% target before they can lower interest rates. Furthermore, the sticky inflation and wage growth in the UK economy might convince the BoE to keep rates on hold longer than the European Central Bank (ECB). This, in turn, might lift the Pound Sterling (GBP) and act as a headwind for the EUR/GBP cross.

On the Euro front, the Eurozone Harmonized Index of Consumer Prices (HICP) eased to 2.8% YoY in January from 2.9% in December, in line with market expectations. Meanwhile, the Core inflation dropped to 3.3% YoY in the same month from the previous reading of 3.4%, above the market consensus of 3.2%. Investors anticipate that the ECB will probably cut interest rates in April, contributing to the Euro's recent weakness.

Later on Friday, the French Industrial Output and Budget Balance for December will be due. Also, BoE Chief Economist Huw Pill is set to speak on Friday.

EUR/GBP

Overview
Today last price	0.8534
Today Daily Change	0.0005
Today Daily Change %	0.06
Today daily open	0.8529

Trends
Daily SMA20	0.857
Daily SMA50	0.8606
Daily SMA100	0.8646
Daily SMA200	0.8629

Levels
Previous Daily High	0.8559
Previous Daily Low	0.8521
Previous Weekly High	0.8584
Previous Weekly Low	0.8521
Previous Monthly High	0.8683
Previous Monthly Low	0.8513
Daily Fibonacci 38.2%	0.8544
Daily Fibonacci 61.8%	0.8535
Daily Pivot Point S1	0.8513
Daily Pivot Point S2	0.8498
Daily Pivot Point S3	0.8475
Daily Pivot Point R1	0.8551
Daily Pivot Point R2	0.8574
Daily Pivot Point R3	0.8589

Author

Lallalit Srijandorn

FXStreet

Lallalit Srijandorn is a Parisian at heart. She has lived in France since 2019 and now becomes a digital entrepreneur based in Paris and Bangkok.

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