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The European cross should meet initial resistance around 0.8920, while the BoE could deliver a hawkish message on Thursday, noted Valtteri Ahti, Chief Strategist at Danske Bank.

Key Quotes

EUR/GBP continues to grind higher and given that a Brexit deal will most likely not be reached before December at the earliest, we still see risks mainly skewed on the upside near term”.

“Technically, resistance is seen at 0.8920 (1 October high). We do not expect the BoE to find it necessary to send a more hawkish signal to the markets at the MPC meeting on Thursday although it remains a possibility given wages are growing at the fastest pace in this cycle (3.1% y/y)”.