Investing.com — The pair rose 0.2% on Tuesday. The move came after reports showed employment in Britain was higher than expected, while profit figures were slightly softer than expected.
“The BoE has warned that this could be indirectly affected by the data issues affecting the Labor Force Survey, and does not appear to have prioritized this when assessing when to cut rates,” said James Smith, the British economist from ING.
Given the Bank of England’s lack of ability to communicate with the market following the July 4 election, mArket participants will have to wait for the BoE’s June 20 interest rate meeting for more substantive information on the central bank’s outlook and possible policy changes.
The EUR/GBP pair is expected to trade within a range of 0.8450 to 0.8500 in the near term. Analysts are focusing on the repricing of the BoE rate cycle as a key factor that could influence the pair’s movement this summer and look for a return to the 0.86/87 area in the next few months.
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