The euro trimmed earlier gains against the British pound during Thursday’s European session, hovering near the 0.8650 level following mixed UK employment data. Sterling showed resilience after the jobs report, trading flat against the single currency as markets await a critical catalyst.
Traders and currency desks are now focused on the Bank of England’s interest rate decision due later Thursday, which is expected to drive significant volatility in GBP pairs. The employment figures released earlier provided limited directional momentum, leaving the pound range-bound ahead of the central bank announcement.
The BoE decision comes at a crucial juncture as markets assess the UK’s monetary policy trajectory amid persistent economic uncertainty. EUR/GBP positioning suggests traders are holding back from major commitments until policy guidance becomes clear.
FXnCO Insight
Hold GBP exposure decisions until the BoE rate announcement, as volatility is likely to spike immediately following the policy statement and forward guidance.
Source: FXStreet