EUR/GBP retakes 0.8600 and above on BoE

The downbeat momentum in the Sterling is now helping EUR/GBP to advance to daily tops above the key barrier at 0.8600 the figure.

EUR/GBP boosted post-BoE

The European cross met extra buying interest following the steady stance from the BoE at today’s meeting, strongly rebounding from the area of session lows in the 0.8500 neighbourhood. It is worth mentioning that MPC members voted unanimously to leave the monetary status quo unchanged, with the refi rate at 0.25%, the APP at £435 billion and purchases of corporate bonds at £10 billion.

GBP shed initial gains following the BoE’s Quarterly Inflation Report, where Governor Carney hinted at the fact that rates could go in any direction, adding that there is limited tolerance in case inflation overshoots its target.

Additionally, Carney stressed that stimulus pumped in by the BoE following the Brexit vote is so far working.

EUR/GBP key levels

The cross is now gaining 1.29% at 0.8617 facing the next hurdle at 0.8636 (high Jan.31) ahead of 0.8656 (100-day sma) and then 0.8750 (4-month resistance line). On the downside, a break below 0.8488 (low Feb.1) would expose 0.8464 (low Jan.27) and finally 0.8425 (200-day sma).