• EUR/GBP sold off on Thursday, adding to overnight losses.
  • The GBP shrugged off renewed lockdown fears & Brexit uncertainties.
  • Expectations of additional ECB monetary policy easing kept EUR under pressure ahead of the minutes from the latest ECB meeting.

The EUR/GBP traded under 0.91 hitting a 2 day low in early European trade.

The losses built on yesterday’s sell off retracing  from an eight-day high amid some buying action around sterling. Pound buyers were unaffected by concerns of stricter lockdown restrictions in the UK and appeared to shrug off ongoing Brexit uncertainties.

The UK government is considering tightening lockdown restrictions in parts of northern England to stem the spread of resurging covid infections. As for Brexit, Irish Foreign Minister Simon Coveney commented that level playing field is still a contentious issue and progress on fishing rights appears some way off.

Growing expectation that the ECB will ease policy further dragged on the Euro. Recent inflation data was dire and  ECB vice-president Luis de Guindos, added to easing bets by saying that that inflation expectations are low.

The ECB monetary policy meeting minutes will be a key focus and could inject some volatility.There is no other high impacting data from the Eurozone or UK so sellers should be cautious..