Euro gains modestly against British Pound after ECB delivers widely expected hike
EUR/GBP trades with a modest positive bias on Thursday but stays within the narrow range that has been in place for more than a week.
The Euro gained a slight edge against the British Pound on Thursday, trading around 0.8595, following the European Central Bank's (ECB) widely anticipated interest rate increase. The ECB raised its key rates by 25 basis points, resulting in a deposit facility rate of 2.50%. Despite the hike, the Euro's appreciation was minimal, as the move was already anticipated and did not spur a breakout.
ECB President Christine Lagarde highlighted that the Eurozone economy is resilient, with inflation expectations remaining elevated but ultimately expected to align with the ECB's 2% target. Meanwhile, the Bank of England (BoE) is projected to keep its policy rate steady at 3.75% during a meeting on September 17, with economists anticipating no change through the end of the year.
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