EURGBP Gains as ECB Rate Decision Looms
London: 26 October 2023 (TraderMade): The EUR/GBP cross continues its upward trajectory for the second consecutive day. The market is now eagerly awaiting the European Central Bank (ECB) interest rate decision, which is expected to maintain the current rate.
EURGBP current status
The pair reached 0.87287 yesterday and closed at 0.8726. By around 08:35 AM GMT, EURGBP was at 0.87253.
ECB and BoE monetary policy decisions matter
While the markets have priced in a continuation of stable ECB policy rates for the remainder of the year, it is anticipated that ECB President Christine Lagarde might signal a tightening bias compared to the Bank of England (BoE).
Adding to the anticipation, ECB President Lagarde recently commented on the commitment to closely monitor the evolving crisis in the Middle East and its potential repercussions on the eurozone economy. This geopolitical uncertainty adds extra complexity to the ECB's decision-making process.
On the other side of the equation, the GBP faces headwinds from disappointing economic data in the United Kingdom. The Manufacturing PMI remains entrenched in the recessionary zone, highlighting the challenges faced by the British manufacturing sector.
Additionally, employment data paints a concerning picture, suggesting the labor market is gradually easing.
As the day progresses, all eyes are on the ECB monetary policy meeting. Following the rate decision, market participants are eager to tune into the ECB Press Conference for insights into the central bank's outlook and potential policy shifts.
Stay updated with EURGBP live rates to make informed decisions.
