After a great run to the topside yesterday and a further rally to fresh trend highs at 0.8672 in London this morning, EUR/GBP has given back some gains as the pound was bolstered by a second vote for a BOE rate hike, a sign that some members of the MPC are dissatisfied with the BOE’s inaction in the face of persistent and rising inflation.
Stops are eyed now below the 0.8610 level while bids return on the approach of 0.8575/80. EUR/GBP trades now at 0.8619.
The EUR/GBP weakness is helping weigh on EUR/USD which stalled not far from its 61.8% retracement (of the 1.4280/1.2860 decline) at 1.3735 earlier today.
