- EUR/GBP sold off again for the second day Thursday.
- Strong pound (GBP) demand exerted pressure on the pair
- The euro (EUR) benefitted from a weaker USD which could limit losses ahead of the ECB.
A jump in demand for the British pound pulled EUR/GBP to an eight-month lows, at 0.8830 in early European trade.
The pair declined for a second consecutive session on Thursday and could extend losses.. The Pound’s outperformance versus the Euro could be attributed to the rapid vaccination campaign in the UK and a gradual decrease in COVID-19 cases in the UK.
Meanwhile a weaker tone surrounding the US dollar underpinned the Euro, although it lacked follow through. A delay in the rollout of COVID-19 vaccine in Europe added pressure to the euro ahead of the European Central Bank meeting.
The ECB is due to announce its monetary policy decision later this Thursday at 12:45 GMT. The central bank is widely expected to leave its monetary policy unchanged. Instead the focus will be on any comment over the high exchange rate of the euro.
ECB President Christine Lagarde’s comments will be closely scrutinized for clues that the central bank may take measures to curb further appreciation of the euro. could fuel volatility and provide some trading opportunities.
Currencylive.com is a news site only and not a currency trading platform. Currencylive.com is a site operated by Wise US Inc ("We", "Us"), a Delaware Corporation. We do not guarantee that the website will operate in an uninterrupted or error-free manner or is free of viruses or other harmful components. The content on our site is provided for general information only and is not intended as an exhaustive treatment of its subject. We expressly disclaim any contractual or fiduciary relationship with you on the basis of the content of our site, any you may not rely thereon for any purpose. You should consult with qualified professionals or specialists before taking, or refraining from, any action on the basis of the content on our site. Although we make reasonable efforts to update the information on our site, we make no representations, warranties or guarantees, whether express or implied, that the content on our site is accurate, complete or up to date, and DISCLAIM ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. Some of the content posted on this site has been commissioned by Us, but is the work of independent contractors. These contractors are not employees, workers, agents or partners of Wise and they do not hold themselves out as one. The information and content posted by these independent contractors have not been verified or approved by Us. The views expressed by these independent contractors on currencylive.com do not represent our views.
