EUR/GBP climbs to over one-week tops, beyond mid-0.9000s ahead of BoE
- EUR/GBP built on the overnight recovery move and gained traction for the second straight day.
- The British pound was being weighed down by expectations for additional stimulus by the BoE.
- The euro benefitted from weaker USD and remained supportive of the ongoing positive move.
The EUR/GBP cross edged higher through the first half of the trading action on Thursday and was last seen hovering near one-week tops, around mid-0.9000s.
The cross built on the previous day's goodish rebound from the 0.8945 region, or the lowest level since September 7 and gained some follow-through traction for the second consecutive session. The uptick was supported by the euro's relative outperformance against its British counterpart.
The greenback suffered a blow after former vice president Joe Biden increased his lead over the incumbent President Donald Trump in a nail-biting US presidential election. This, in turn, benefitted the shared currency and remained supportive of the bid tone surrounding the EUR/GBP cross.
On the other hand, expectations that the Bank of England will unveil more stimulus to combat the economic fallout from fresh coronavirus-induced lockdowns kept the GBP bulls on the defensive. The UK central bank is also expected to revise down its economic forecast amid Brexit uncertainties.
Hence, the key focus will be on the BoE announcement, scheduled to be announced at 07:00 GMT. This will be followed by the post-meeting press conference, where comments by the BoE Governor Andrew Bailey will influence the GBP price dynamics and produce some meaningful trading opportunities.
Technical levels to watch