The Euro rose to 0.8540 versus the Pound as Brent crude fell to $87.40, easing inflation pressures for Eurozone importers.
The Euro advanced to 0.8540 against the British Pound on Monday, recovering from a Friday pullback to 0.8530. The pair remains in a bullish trend from mid-July lows of 0.8455, with resistance at 0.8555.
Support for the Euro stemmed from a 9% drop in Brent crude prices, which fell to $87.40 from over $96.00 last week. The decline followed a pause in US-Iran tensions, reducing energy cost pressures for net oil importers like Eurozone economies.
Investors are also focused on the Bank of England’s upcoming policy decision, where rates are expected to remain unchanged. Attention will center on the vote split and Governor Bailey’s remarks for hints on future hikes.