EUR/GBP jumps above 0.8350, all eyes will be on ECB rate decision

• EUR/GBP climbs to around 0.8380 in Thursday's early European session. 
• The ECB is widely expected to cut the interest rates, bringing the bank's benchmark deposit rate to 2.5% on Thursday. 
• BoE's Ramsden said the central bank should keep a "careful and gradual" approach to monetary policy amid uncertainty. 

The EUR/GBP cross trades in positive territory for the fourth consecutive day around 0.8380 during the early European session on Thursday. The easing fear of trade tariff plans from US President Donald Trump provides some support to the Euro (EUR). The European Central Bank (ECB) interest rate decision will take center stage later on Thursday. 

The US announced the launch of tariffs on major trading partners, which are expected to cause a slowdown in global sectors, including automotive, but the duties might yet be pared back. Traders will closely monitor the developments surrounding further tariff plans. Any signs of escalating trade tensions could exert some selling pressure on the shared currency. 

The ECB is expected to cut interest rates at its March meeting on Thursday. Markets have priced in a quarter-point rate cut from the ECB on Thursday and another half-point in cuts by the end of the year. Analysts at Rabobank said the EUR's upside was "in part due to expectations that room for further ECB rate cuts will be more confined," with the reforms and higher spending bringing the "promise of an uplift in economic growth."

The Bank of England (BoE) governor Andrew Bailey thinks a renewed bout of inflation is nothing to worry about. Meanwhile, BoE Deputy Governor Dave Ramsden said that the UK central bank should keep a "careful and gradual" approach to the monetary policy amid uncertainty over the labor market and global trade. The bets of a gradual monetary expansion approach are supported by elevated United Kingdom (UK) wage growth, which could keep inflationary pressures persistently higher.