In the early European session on Wednesday, the EUR/GBP strengthened to about 0.8535.
The US continues to attack Iran.
Following higher oil prices, traders increased their bets on quicker rate hikes by the ECB and BoE.
During Wednesday's early European trading hours, the EUR/GBP cross gathers strength and approaches 0.8535. As the spike in oil prices rekindles concerns about inflation, traders increase their bets on rate increases by the Bank of England (BoE) and the European Central Bank (ECB). Later in the day, ECB policymakers Joachim Nagel and Fabio Panetta will give speeches.
Concerns about oil-driven inflation have been heightened by US President Donald Trump's reinstatement of an embargo on Iranian ships passing through the Strait of Hormuz and his demand for payment for all other goods. The US Central Command (CENTCOM) reported on Tuesday that it has carried out more attacks on Iran, striking dozens of military targets close to the Strait of Hormuz and Iranian coastal regions.
According to Reuters, Iran's Islamic Revolutionary Guard Corps (IRGC) declared on Wednesday that it has attacked US Fifth Fleet command-and-control, logistical, petroleum, and military equipment installations in Bahrain.
A 25 basis point (bps) BOE increase by September and another by year-end are already fully priced by traders. According to Bloomberg, they also anticipate a quarter-point rate increase by the ECB in September, with another boost by year's end all but guaranteed.
Christine Lagarde, president of the European Central Bank, underlined that the central bank is still entirely dependent on statistics. The June raise was not a definite sequence or a certain one-time action, as the official policy account made clear. Martin Kocher, a member of the ECB Governing Council, stated on Wednesday that the central bank is ready to deploy monetary policy measures if needed.
The US continues to attack Iran.
Following higher oil prices, traders increased their bets on quicker rate hikes by the ECB and BoE.
During Wednesday's early European trading hours, the EUR/GBP cross gathers strength and approaches 0.8535. As the spike in oil prices rekindles concerns about inflation, traders increase their bets on rate increases by the Bank of England (BoE) and the European Central Bank (ECB). Later in the day, ECB policymakers Joachim Nagel and Fabio Panetta will give speeches.
Concerns about oil-driven inflation have been heightened by US President Donald Trump's reinstatement of an embargo on Iranian ships passing through the Strait of Hormuz and his demand for payment for all other goods. The US Central Command (CENTCOM) reported on Tuesday that it has carried out more attacks on Iran, striking dozens of military targets close to the Strait of Hormuz and Iranian coastal regions.
According to Reuters, Iran's Islamic Revolutionary Guard Corps (IRGC) declared on Wednesday that it has attacked US Fifth Fleet command-and-control, logistical, petroleum, and military equipment installations in Bahrain.
A 25 basis point (bps) BOE increase by September and another by year-end are already fully priced by traders. According to Bloomberg, they also anticipate a quarter-point rate increase by the ECB in September, with another boost by year's end all but guaranteed.
Christine Lagarde, president of the European Central Bank, underlined that the central bank is still entirely dependent on statistics. The June raise was not a definite sequence or a certain one-time action, as the official policy account made clear. Martin Kocher, a member of the ECB Governing Council, stated on Wednesday that the central bank is ready to deploy monetary policy measures if needed.
