EUR/GBP edges lower as BoE rate cut looms
The post EUR/GBP edges lower as BoE rate cut looms appeared on BitcoinEthereumNews.com. EUR/GBP attracts sellers on Monday with the cross hovering just above the 0.8700 psychological mark, down over 0.20% intraday. Traders reposition ahead of the Bank of England’s monetary policy decision due Thursday, August 7. The United Kingdom’s economic outlook is pressured by tax hikes, slowing consumer demand, and a softening labor market. The Euro (EUR) edges lower against the British Pound (GBP) on Monday, with the Pound trading on a firmer footing across the board, as traders reposition ahead of the Bank of England’s (BoE) monetary policy decision due Thursday, August 7. The EUR/GBP cross marked an intraday high of 0.8731 during the early Asian session but has since drifted lower. At the time of writing, EUR/GBP is hovering around 0.8707 during American trading hours, down over 0.20% on the day, as it pauses a sharp rebound from near a three-week low and snaps a two-day winning streak. However, the downside appears limited, with growing expectations of a dovish BoE interest rate cut on Thursday cushioning further losses. The BoE’s Monetary Policy Committee (MPC) is widely expected to deliver a 25 basis point rate cut on Thursday, lowering the benchmark rate to 4.00%. This would mark the fifth consecutive reduction since August 2024, as the UK economy struggles under the weight of tax increases and cautious consumer spending. While headline inflation eased to 3.6% in June, it remains well above the 2% target, and persistent services inflation continues to worry policymakers. Meanwhile, the labour market is showing clear signs of cooling, with rising unemployment, slowing wage growth, and a marked decline in hiring momentum all adding pressure on the BoE to stay on its easing path. Employers have cut demand for workers after being hit by measures in the Labour government’s first budget, which included a £26 billion ($34.5 billion)…
The post EUR/GBP edges lower as BoE rate cut looms appeared on BitcoinEthereumNews.com.
EUR/GBP attracts sellers on Monday with the cross hovering just above the 0.8700 psychological mark, down over 0.20% intraday. Traders reposition ahead of the Bank of England’s monetary policy decision due Thursday, August 7. The United Kingdom’s economic outlook is pressured by tax hikes, slowing consumer demand, and a softening labor market. The Euro (EUR) edges lower against the British Pound (GBP) on Monday, with the Pound trading on a firmer footing across the board, as traders reposition ahead of the Bank of England’s (BoE) monetary policy decision due Thursday, August 7. The EUR/GBP cross marked an intraday high of 0.8731 during the early Asian session but has since drifted lower. At the time of writing, EUR/GBP is hovering around 0.8707 during American trading hours, down over 0.20% on the day, as it pauses a sharp rebound from near a three-week low and snaps a two-day winning streak. However, the downside appears limited, with growing expectations of a dovish BoE interest rate cut on Thursday cushioning further losses. The BoE’s Monetary Policy Committee (MPC) is widely expected to deliver a 25 basis point rate cut on Thursday, lowering the benchmark rate to 4.00%. This would mark the fifth consecutive reduction since August 2024, as the UK economy struggles under the weight of tax increases and cautious consumer spending. While headline inflation eased to 3.6% in June, it remains well above the 2% target, and persistent services inflation continues to worry policymakers. Meanwhile, the labour market is showing clear signs of cooling, with rising unemployment, slowing wage growth, and a marked decline in hiring momentum all adding pressure on the BoE to stay on its easing path. Employers have cut demand for workers after being hit by measures in the Labour government’s first budget, which included a £26 billion ($34.5 billion)…
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