- Analytics
- News and Tools
- Market News
- EUR/GBP drops below 0.8600 after a hawkish BoE statement
EUR/GBP drops below 0.8600 after a hawkish BoE statement
- The Euro pares gains as the BoE boosts the GBP
- The Bank of England stands pat and keeps the door open for further tightening.
- The ECB will release its decision later today.
The Euro reversed on the back of Pound’s strength as the Bank of England released a hawkishly-tilted monetary policy statement after leaving interest rates unchanged, as widely expected.
Three BoE policymakers vore for a rate hike
The BoE voted to keep the Bank Rate at the current 5.25%, with three policymakers in favour of a 25 bps rate hike, an unchanged vote split from the previous meeting.
The three hawkish voters have endorsed the bank's vow for further tightening if inflationary pressures remain persistent. This has curbed hopes of rate cuts in early 2024 and has provided further support for the Pound.
EUR/GBP Technical analysis
The technical picture shows the pair losing upside momentum, with price action returning below the 0.8600 level. If the ECB increases downside pressure on the Euro later today, we could see the pair extending losses to 0.8580 on its way to 0.8550.
On the upside, above 0.8600, the next resistance levels lie at the November 6 swing low, at 0.8650 and 0.8690.
Technical levels to watch
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
