EUR/GBP slides further toward 0.8750 as traders pare back bets for BoE cuts

• The Sterling bounced up against the Euro after Thursday's BoE monetary policy decision.
• The split vote of the BoE's committee suggests that the Bank might be near its terminal rate.
• Weak German data highlights the weak momentum of the Eurozone's leading economy.

The Euro keeps heading south against the British Pound on Friday. The pair has lost nearly 90 pips since the Bank of England released its monetary policy decision, as price action approaches 0.8650 and is on track for a 0.8% weekly decline.

The BoE cut rates by 25 basis points to 4% as widely expected, but the dissenting opinion of four committee members, who voted to keep rates on hold, forced a second round of voting and prompted investors to scale back hopes of further monetary policy easing in the coming months.

The bank noted this year's increase in inflation but considered that it would be a temporary trend. Price pressures have been mainly driven by energy and food, and might rise further in the next month, according to the statement. Policymakers, however,  remain confident that the CPI will return to the 2% target in the longer run.

The Sterling appreciated across the board following the decision, and has kept trading higher on Friday, as the Euro loses ground against most of its peers. Recent Eurozone data has failed to provide any significant support to the common currency, as a larger-than-expected decline in German Industrial Production and the undershoot trade balance have reminded the soft momentum of the region's leading economy.