The Euro to British Pound exchange rate is influenced by European Central Bank and Bank of England policy, together with changes in the interest-rate gap between the two currencies. Eurozone interest-rate expectations, Eurozone inflation and growth and PMI data can affect the Euro, while UK interest-rate expectations, UK inflation and wage and employment data can move the British Pound.
EUR/GBP is holding at 0.8588, little changed today and broadly flat over the past week and month.
Trade balance came in at 21.3 B, above expectations of 16 B and comments from Bank of England Governor Andrew Bailey kept the British Pound interest-rate outlook in focus.
Next up are Eurozone interest-rate decision on Thursday at 13:15 UK time and Eurozone eCB Press Conference on Thursday at 13:45 UK time, which could set the direction for EUR/GBP.
Mid-market reference rate. Customer rates normally include provider margins and fees. How our rates work.
