EUR/GBP flat lines above mid-0.8300s, remains confined in a multi-day-old range

Source Fxstreet
  • EUR/GBP struggles for a firm near-term direction as traders keenly await the ECB on Thursday. 
  • The ECB is expected to lower interest rates again amid easing inflation and economic slowdown.
  • Bets for an aggressive BoE policy easing undermine the GBP and act as a headwind for the cross. 

The EUR/GBP cross extends its sideways consolidative price move through the first half of the European session on Monday and remains confined in a familiar range held over the past week or so. Spot prices currently trade around the 0.8365 region, nearly unchanged for the day as traders opt to wait on the sidelines ahead of the key central bank event risk later this week. 

The European Central Bank (ECB) is scheduled to announce its policy decision on Thursday and is expected to cut interest rates again for the third time this easing cycle amid mounting concerns over sluggish growth. Furthermore, inflation in the Eurozone fell below the ECB's 2% target for the first time since 2021 and backs the case for further policy easing. This, in turn, undermines the shared currency and turns out to be a key factor acting as a headwind for the EUR/GBP cross. 

Meanwhile, the Bank of England (BoE) Governor Andrew Bailey recently hinted that the central bank could cut interest rates more aggressively if there's further good news on inflation. The comments fueled speculation that the BoE might be headed towards speeding up its rate-cutting cycle and hold back traders from placing bullish bets around the British Pound (GBP). This, to a larger extent, offsets the negative factor and offers some support to the EUR/GBP cross.

The aforementioned mixed fundamental backdrop supports prospects for an extension of the subdued range price action in the absence of any relevant market-moving economic releases, either from the Eurozone or the UK. Hence, it will be prudent to wait for a sustained move in either direction before positioning for a firm near-term trajectory.

Economic Indicator

ECB Rate On Deposit Facility

One of the European Central Bank's three key interest rates, the rate on the deposit facility, is the rate at which banks earn interest when they deposit funds with the ECB. It is announced by the European Central Bank at each of its eight scheduled annual meetings.

Read more.

Next release: Thu Oct 17, 2024 12:15

Frequency: Irregular

Consensus: 3.25%

Previous: 3.5%

Source: European Central Bank

 

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Gold Price Forecast: PCE Data Weakens Fed Rate Hike Expectations, Can Gold Price Hold Steady at $4,000?As of today's Asian session (June 26), gold ( XAUUSD) prices fluctuated near $4,010. Yesterday, gold rebounded following the release of the PCE data, and market sentiment improved signifi
Author  TradingKey
8 hours ago
As of today's Asian session (June 26), gold ( XAUUSD) prices fluctuated near $4,010. Yesterday, gold rebounded following the release of the PCE data, and market sentiment improved signifi
placeholder
Australian Dollar edges lower to near 0.6900 on Fed hike bets The AUD/USD pair edges lower to around 0.6900 during the Asian trading hours on Friday. The US Dollar (USD) strengthens against the Australian Dollar (AUD) on the expectation of US rate hikes later this year.
Author  FXStreet
17 hours ago
The AUD/USD pair edges lower to around 0.6900 during the Asian trading hours on Friday. The US Dollar (USD) strengthens against the Australian Dollar (AUD) on the expectation of US rate hikes later this year.
placeholder
Gold Price Forecast: Gold Price Falls Below $4,000, PCE Data May Push Gold Down to $3,900As of today (June 25) during the Asian session, gold ( XAUUSD) was last priced at $3,976.90, down 0.54% on the day. After gold prices fell below $4,000 yesterday, they fluctuated around $
Author  TradingKey
Yesterday 08: 52
As of today (June 25) during the Asian session, gold ( XAUUSD) was last priced at $3,976.90, down 0.54% on the day. After gold prices fell below $4,000 yesterday, they fluctuated around $
placeholder
Crypto market sheds over 50% of its value amid Bitcoin's brief decline below $60KThe crypto market has erased more than half of its value since reaching an all-time high in late 2025. The decline underscores the severity of the recent bear market and lack of a fresh catalyst to revive investor interest, according to a Wednesday X post by The Kobeissi Letter.
Author  FXStreet
Yesterday 01: 47
The crypto market has erased more than half of its value since reaching an all-time high in late 2025. The decline underscores the severity of the recent bear market and lack of a fresh catalyst to revive investor interest, according to a Wednesday X post by The Kobeissi Letter.
placeholder
Gold Price Trend Forecast: Gold Price Risks Falling Below $4,000, PCE Data Is Key As of the European session today (June 24), gold prices ( XAUUSD) remained weak and fell intraday, touching an intraday low of $4,050 to hit a near two-week low, signaling clear short-ter
Author  TradingKey
Jun 24, Wed
As of the European session today (June 24), gold prices ( XAUUSD) remained weak and fell intraday, touching an intraday low of $4,050 to hit a near two-week low, signaling clear short-ter
Related Instrument
goTop
quote