The Euro hovers near trendline support against the Pound after the Bank of England signals potential rate hikes amid Middle East tensions.
EUR/GBP trades near 0.8555, testing ascending trendline support after retreating from Thursday’s 0.8585 highs. The pair remains flat as markets assess the Bank of England’s stance on monetary policy.
The BoE held rates at 3.75% but indicated readiness to tighten if the Iran conflict drives oil prices above $100. Three hawkish dissenters and Governor Bailey’s comments lifted the Pound, offsetting earlier losses. In the Eurozone, German HICP inflation rose to 2.8% YoY, reinforcing expectations of an ECB rate hike in September.
Technical indicators suggest fading bullish momentum, with the RSI near neutral and MACD in negative territory. The pair remains within an upward channel but lacks decisive direction.