- EUR/GBP gyrates around 0.9100 following BoE decision.
- BoE kept rates, asset purchase facility unchanged today.
- BoE made no comments on Brexit.
The broad-based rangebound prevailing in both the Sterling and the shared currency is prompting EUR/GBP to follow the same theme in the 0.9100 area.
EUR/GBP apathetic on BoE (non) event
The European cross has managed to rebound from Wednesday’s lows in the 0.9090/85 band and regained the 0.9100 neighbourhood amidst the persistent selling bias in EUR and some tepid recovery attempt in the Sterling.
Today, the BoE failed to ignite a noticeable reaction in the British Pound after leaving unchanged its refi rate and the asset purchase facility at 0.75% and £435 billion, respectively. Surprisingly, the central bank refused to comment on Brexit.
Speaking about Brexit, latest news said the government is planning an extra £2.1 billion to prepare for a ‘no deal’ outcome, when the October deadline is just around 90 days away. The fresh funds would be oriented to increase border officers and to improve transport infrastructure at UK ports.
EUR/GBP key levels
The cross is gaining 0.13% at 0.9113 and faces t he immediate hurdle at 0.9190 (2019 high Jul.30) followed by 0.9225 (2016 high Oct.7) and finally 0.9306 (2018 high Aug.29). On the other hand, a drop below 0.9088 (low Jul.31) would open the door to 0.9051 (high Jul.17) and then 0.9006 (21-day SMA).
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