EUR/GBP

EUR/GBP remains on the back foot on Thursday as the European Central Bank’s (ECB) monetary policy announcement fails to lift the Euro (EUR) against the British Pound (GBP), which outperforms its major peers.

Societe Generale analysts see scope for a relief rally in GBP/USD following the UK Budget and ahead of a potentially hawkish Bank of England hike. They argue the UK is on track for the fastest fiscal consolidation in the G7, which could eventually support Gilts and Sterling.

The Euro (EUR) posts minor losses against the British Pound (GBP) on Thursday, trading within Wednesday’s range, as investors await the European Central Bank’s (ECB) monetary policy decision, due later in the day.

ING's Chris Turner sees scope for a partial unwind of a 20bp risk premium in 10-year UK gilt yields following the budget. While the Bank of England's tightening outlook should remain broadly unchanged unless minimum wages surprise, narrowing gilt–Bund spreads may support Sterling.

EUR/GBP bears take a breather on Wednesday, pausing a two-day losing streak as traders trim their exposure to the British Pound ahead of the UK Autumn Budget at 12:30 GMT. At the time of writing, the cross trades around 0.8375, up 0.17% on the day, but remains near its lowest levels since May 2025.

The Euro (EUR) is drawing some support from a softer British Pound (GBP) on Wednesday, as markets brace for the release of the first budget of Prime Minister Andy Burnham’s cabinet.