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EUR/GBP back under pressure as UK beats EU on all fronts

Yesterday the EUR/GBP fell back from a recent rebound high at 0.8634. The drop extended to below the 0.8600 handle as the BOE remained on hold, but talked tough on the outlook for UK interest rates. That sent the EUR/GBP back down to a low at 0.8587 just as the BOE delivered its unchanged rate announcement. It did rebound somewhat into the 4pm London fix, but still closed lower on the day, at 0.8611. It had closed on Wednesday at 0.8618. Previous updates here called for a rise to back above 0.8600 and as you can see that played out as planned. However, that call was not for a sustained move and was born more from the price stalling ahead of the 0.8550 level for at least 8 trading days beforehand. Well, it is tracking lower again now and for good reason, because increasingly the UK is looking in much better shape than its European counterparts, as witnessed by the data released this morning. The EUR/GBP has just now hit a session low at 0.8582 and if it keeps going then pretty soon that 0.8550 level might come under scrutiny once more. We shall see how that plays out from here. The EUR/GBP is currently trading at 0.8582

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