The euro falls against the pound despite expectations of an ECB rate hike, as traders await guidance from policymakers this week.
The EUR/GBP pair declined to 0.8635 in early European trading on Monday, extending losses as the euro underperformed the British pound. Market focus remains on upcoming speeches from European Central Bank officials, including President Christine Lagarde, for clues on future monetary policy.
The cross had traded higher last week on expectations of an ECB rate increase, but the euro’s recent weakness suggests investors are seeking clearer signals. No major economic data releases are scheduled for Monday, leaving traders reliant on central bank commentary for direction.
The pair’s movement reflects broader uncertainty over the ECB’s tightening path amid mixed economic indicators in the eurozone. Lagarde’s remarks later this week could provide further clarity on the bank’s stance.