- The cross stays on the positive ground following BoE.
- BoE revised lower its inflation projections.
- BoE’s Carney said domestic tensions remain in place.
The volatile mood around the British Pound keeps EUR/GBP bid near the ciritical hurdle at 0.8600 the figure today.
EUR/GBP bid on BoE
The European cross gained further upside traction after the BoE revised lower its inflation forecasts, while it revised up its projections for economic growth in the next years.
In addition and at his press conference, Governor Carney noted inflation is expected to lose traction on the back of energy prices, adding that excess demand should add to pressures in domestic prices.
Earlier in the day, Carney noted that more than a rate hike is needed to keep inflation on check, sparking some bouts of volatility around GBP.
EUR/GBP key levels
The cross is gaining 0.15% at 0.8589 and a break above 0.8627 (21-day SMA) would expose 0.8681 (high Apr.23) and finally 0.8722 (high Mar.21). On the other hand, the next support lines up at 0.8568 (low May 2) followed by 0.8502 (low Apr.3) and then 0.8471 (2019 low Mar.13).
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