- ECB reiterates that they need to be ready to ease policy further as appropriate.
- Carney says material risks of economic disruption remain from no-deal Brexit.
After touching its highest level since early January at 0.9014 yesterday, the EUR/GBP reversed its direction on Thursday and dropped to a session low of 0.8970 in the last hour before staging a modest rebound. As of writing, the pair was down 0.15% on the day at 0.8985.
Earlier today, while delivering his remarks following the release of the central bank’s Financial Stability Report (FSR), Bank of England (BOE) Governor Mark Carney noted that the material risks of economic disruption from a no-deal Brexit remain and added that British exports were showing a “mixed picture on no-deal preparedness.” Despite these comments, the broad euro weakness allowed the pair to push lower.
European Central Bank Governor Council member Coeure today said that they were taking market concerns about protracted low inflation seriously. Moreover, in its June5-6 meeting accounts, the ECB reiterated that they needed to be ready and prepared to ease policy further as appropriate and explained that potential easing measure could include extending and strengthening the forward guidance, resuming APP as well as cutting rates.
There won’t be any macroeconomic data releases in the remainder of the week and the pair is likely to continue to trade in its weekly range.
Technical levels to watch for
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