The batter lifted against the euro ahead of the ECB’s latest update
Sterling moved up to around 1.1303 against the euro, after lower than awaited UK inflation yesterday promped the pound to fall as low as 1.124 yesterday.
Customer bases are now eagerly awaiting to hear from ECB president Mario Draghi, who is set to signal the track of monetary policy in the eurozone over the coming months.
Expectations the significant bank could scale back support for the economy have been multiplying in recent weeks, helping to strengthen the euro.
If the chief provides inklings about either raising interest rates or reducing te size of the eurozone money-printing affairs, the bloc’s currency could rise further.
The pound edged up against the euro on Wednesday morning
1 of 8
Michael Hewson, chief market analyst at CMC Furnishes UK, said: «While the economic outlook has improved in Europe markets are now flutter it is only a matter of when the ECB starts preparing the ground for a slow shelter from its stimulus program.»
The euro has strengthened dramatically against the dollar in latest months, now sitting at around 1.1523 — and Mr Draghi could push the eurozone currency squeaky.
Mr Hewson added: «A move to the 1.2000 level is a distinct potential on a break of 1.1620 and last year’s high.»
It comes as the dollar has weakend with hesitates over Donald Trump’s agenda after the president’s failed healthcare charge.
Despite yesterday’s hit to the pound, experts say sterling could start against the dollar in the near future.
The price action on the GBP/USD looks bullish thanks mainly to ongoing weakness in US dollar.
Fawad Razaqzada, market analyst at Forex.com voted: «The cable took its sweet time but last week finally pured a major hurdle when it closed above the 1.3000-1.3050 intransigence area where it had struggled in the past.
«Now above this area, the tow-path of least resistance is to the upside and will remain that way until such a be that as it may we see a distinct reversal pattern unfold.»
More to follow…