- EUR / GBP fell after comments from Haldane, an official at the Bank of England.
- The pound is constrained by concerns about the coronavirus and the implications of Brexit.
- A tone of caution predominates in the run-up to Thursday’s meeting of the European Central Bank.
The EUR / GBP is moving without a clear direction on Wednesday and remains around 0.8600. A combination of divergent forces failed to provide significant momentum to the crossing, allowing it to continue moving mostly laterally. It is trading at 0.8606, the intraday high, 20 pips from the low of the day.
The EUR / GBP decline came in reaction to the Comments from Bank of England Chief Economist Andy Haldane. He said there are some pretty strong pressures on prices and this could lead to the central bank starting to turn off the stimulus tap. Haldane will leave his position at the BoE at the end of the month. In May he had voted to reduce the shopping program.
Negative factors for the pound have been complications from the Northern Ireland protocol and the possibility that the end of the coronavirus restrictions in the United Kingdom will be postponed.
With regard to the euro, caution prevails pending Thursday’s meeting of the Governing Board of the European Central Bank. Reuters reported that a three-day meeting will also be held in June to review the ECB’s monetary policy strategy.
Technical levels
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