EUR/GBP ticks up to 0.8680 after BoE’s decision, remains in range

• The Euro bounced up from session lows at 0.8665 following the BoE's monetary policy decision.
• The Bank of England left interest rates on hold at 4% with two MPC members voting for a rate cut.
• EUR/GBP remains trading within a narrow range below Tuesday's high, at the 0.8700 area.

The Euro edged higher after the Bank of England confirmed market expectations and stood pat on interest rates. The pair bounced up from session lows, at the 0.8665 area, to 0,8680 but remains looking for direction within Wednesday’s trading range.

The Bank of England left its Repo Rate unchanged at 4%, as widely expected, after having trimmed it by 25 basis points in July. Within the committee, seven policymakers voted for the status quo, up from five in July, and two leaned for a further rate cut, down from 5 in July.

The bank’s statement highlights the 3.8% yearly inflation and the subdued underlying GDP growth, pointing to a gradual and careful approach to further monetary easing, leaving all chances open for the November 16 meeting.

Investors’ reaction to the news has been muted so far. With both currencies appreciating against the US Dollar, the EUR USD remains treading water within a narrow range above 0.8660, not far from the two-week high, at 0.8700 hit on Tuesday.