- The EUR/GBP extends losses to hope that the Trump administration can soon announce a commercial agreement with the United Kingdom.
- It is widely expected that the BOE will make a rate cut of 25 basic points, but the operators seek signals about the perspectives.
- Germany’s commercial surplus drastically increased to 21.1 billion euros in March, exceeding 19.1 billion euros.
The EUR/GBP is expanding losses per fourth consecutive session, quoting about 0.8500 in the first European hours on Thursday. However, the currency crossing is under pressure as the pound sterling (GBP) is strengthened in the face of speculation that the Trump administration can soon announce a commercial agreement with the United Kingdom.
According to “The New York Times”, citing three sources, the US President Donald Trump is expected to reveal the agreement on Thursday. Trump hinted at the announcement on Wednesday night, publishing: “Great press conference tomorrow at 10:00 am, at the Oval office, on an important commercial agreement with representatives of a large and highly respected country. The first of many !!!”
Market attention now moves to the decision on the interest rate of the Bank of England (BOE), which will also be announced on Thursday. A rate of 25 basic points is widely anticipated, but investors will be attentive to signals on future relief, particularly in the light of commercial optimism.
Meanwhile, Germany’s commercial surplus drastically increased to 21.1 billion euros in March, from a review of 17.9 billion euros in February, exceeding the expectations of 19.1 billion euros. Exports rose 1.1% monthly to 133.2 billion euros, a maximum of 11 months, while imports unexpectedly fell 1.4% to 112.1 billion euros.
Despite the recent strength of the GBP, the decrease at the EUR/GBP crossing can be limited, since the euro (EUR) could find support after political developments in Germany. The conservative leader Friedrich Merz was invested as Chancellor in a second attempt, after losing the majority required in the initial vote.
Economic indicator
Decision on the BOE interest rate
He Bank of England Announce your decision on the interest rate at the end of your eight meetings scheduled per year. If the BOE adopts a hard line posture on the inflationary perspectives of the economy and elevates interest rates, it is generally bullish for sterling pound (GBP). Similarly, if the BOE adopts a moderate vision of the United Kingdom economy and keeps interest rates without changes, or reduces them, it is considered bassist for the GBP.
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Next publication: play May 08, 2025 11:02
Frequency: Irregular
Dear: 4.25%
Previous: 4.5%
Fountain: Bank of England
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
