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EUR/GBP very much in the spotlight later today

So, whilst the Fed decision and later Jerome Powell comment is still hogging the limelight for the FX markets this morning, attention will turn to the Old Lady at 12pm GMT. That Old lady is of course the Bank of England and the UK Central Bank will deliver its first policy decision of the year later today. Some analysts out there think the BOE will signal a potential end to higher UK interest rates, but rightly or wrongly that is not the view shared here. Of course they might do that, but their most recent rhetoric has certainly given no clues in that direction. So, the BOE could be active in deciding if the pound can rebound again versus the dollar and perhaps more likely versus the Euro. The EUR/GBP did close lower last night into the month-end and that close was of course helped by the EUR/USD later falling back. The EUR/GBP ended the month at 0.8526. The levels and lines of demarcation this morning would appear to be at 0.8500 and 0.8560. A break either side of that range could see an extension unfold. This analyst has been gunning for the lower end of that for some while now and that has not changed this morning, but if it does after 12pm GMT, you will be the first to know about it. The EUR/GBP is currently trading at 0.8529

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