Select Language

EUR/GBP rises sharply to near 0.8250 after BoE holds rates steady at 4.75%

Breaking news

EUR/GBP rises sharply to near 0.8250 after BoE holds rates steady at 4.75%

  • X
  • facebook
  • LINE
  • RSS

  • X
  • facebook
  • LINE
  • RSS
New update 2024.12.19 22:18
EUR/GBP rises sharply to near 0.8250 after BoE holds rates steady at 4.75%

update 2024.12.19 22:18

  • EUR/GBP gains sharply to near 0.8260 after the BoE holds interest rates steady at 4.75%, as expected, with a 6-3 vote split.
  • BoE Bailey refrained from committing a pre-defined rate cut path.
  • The Euro performs strongly despite ECB officials guiding more interest rate cuts.

The EUR/GBP pair climbs to near 0.8260 in Thursday's North American session. The cross gains after the Bank of England's (BoE) monetary policy announcement in which it leaves interest rates unchanged at 4.75%.

The BoE was already expected to hold its key borrowing rates steady. However, the vote split came in at 6-3 against 8-1, which suggested that more policymakers were in favor of cutting interest rates. The scenario resulted in selling pressure on the Pound Sterling (GBP). BoE external Monetary Policy Committee (MPC) members Swati Dhingra and Alan Taylor, and Deputy Governor Dave Ramsden proposed a 25-basis points (bps) interest rate reduction.

A majority of BoE officials voted for leaving interest rates steady as United Kingdom (UK) price pressures have accelerated in the past two months amid strong wage growth.

BoE Governor Andrew Bailey refrained from guiding the likely interest rate cuts next year. "Due to heightened uncertainty in the economy, we can't commit to when or by how much we will cut rates in 2025," he said.

Going forward, investors will focus on the UK Retail Sales data for November, which will be released on Friday. On a monthly basis, UK Retail Sales are estimated to have grown by 0.5% after a 0.7% decline in October.

Meanwhile, the Euro (EUR) outperforms its major peers on Thursday even though European Central Bank (ECB) officials guide further policy easing in 2025. ECB policymakers support more interest rate cuts as Eurozone inflation is broadly under control and potential risks to economic growth have increased due to incoming tariff policies by United States (US) President-elect Donald Trump.


Date

Created

 : 2024.12.19

Update

Last updated

 : 2024.12.19

Related articles


Show more

FXStreet

Financial media

arrow
FXStreet

FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.

Was this article helpful?

We hope you find this article useful. Any comments or suggestions will be greatly appreciated.  
We are also looking for writers with extensive experience in forex and crypto to join us.

please contact us at [email protected].

Thank you for your feedback.
Thank you for your feedback.

Most viewed

Gold Price Forecast: XAU/USD holds around $2,610 ahead of Christmas Eve

The Gold price remains relatively steady around the $2,611 mark, as market participants adjust to a more cautious outlook on US interest rates.
New
update2024.12.25 01:57

GBP/USD Hits 1.2550 amid low trading volume

The GBP/USD pair has seen a modest rise to 1.2550, as low trading volume characterizes the market this week due to the upcoming Christmas holidays.
New
update2024.12.25 01:07

USD/CAD wobbles around 1.4400 amid quiet trading session ahead of Christmas Day

The USD/CAD pair trades sideways around 1.4400 in Tuesday's North American session.
New
update2024.12.24 22:58

US Dollar trades flat as traders make way to the Christmas table

The US Dollar (USD) trades sideways on Tuesday, with the DXY Index slightly above 108.00, as markets are starting to unwind towards the Christmas holiday.
New
update2024.12.24 21:31

Crude Oil volatility settles down ahead of API stockpile data

Crude Oil prices are starting to see volatility die down on Tuesday as traders look ahead to Christmas Eve rather than the release of the American Petroleum Institute (API).
New
update2024.12.24 20:45

AUD/USD Price Forecast: Sees fresh downside below 0.6200

The AUD/USD pair drops to near 0.6230 in Tuesday's European session.
New
update2024.12.24 20:22

Silver Price Forecast: XAG/USD drops to near $29.50, facing pressure from Fed's moderate hawkish stance

Silver price (XAG/USD) falls to near $29.30 in Tuesday's European session, though it remains inside Monday's trading range amid thin trading volume due to holidays on Wednesday and Thursday on account of Christmas Eve and Thanksgiving Day.
New
update2024.12.24 19:34

Pound Sterling consolidates against USD in holiday-curtailed week

The Pound Sterling (GBP) trades sideways above the psychological support of 1.2500 against the US Dollar (USD) in Tuesday's London session.
New
update2024.12.24 18:43

Silver price today: Silver broadly unchanged, according to FXStreet data

Silver prices (XAG/USD) broadly unchanged on Tuesday, according to FXStreet data.
New
update2024.12.24 18:30

GBP/JPY remains on the back foot below 197.00 amid intervention fears

The GBP/JPY cross struggles for a firm intraday direction and oscillates in a narrow trading band, below the 197.00 round-figure mark through the first half of the European session on Tuesday.
New
update2024.12.24 18:05

Disclaimer:arw

All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.

The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.

  • Facebook
  • Twitter
  • LINE

Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy

I agree
share
Share
Cancel