Anna 
The EUR/GBP pair has rebounded, reclaiming ground lost on Tuesday, and is trading near 0.8550 during the early European hours on Wednesday. The upward movement is supported as traders adopt a cautious stance ahead of the Eurozone Economic Sentiment Indicator for February.
The European Commission is anticipated to report a potential improvement in consumers’ confidence in economic activity, with the expected reading rising to 96.7 from the previous 96.2. However, recent data, such as the Gfk German Consumer Confidence Survey for March, which matched expectations at -29, compared to the previous reading of -29.6 in February, has highlighted challenges in the economic landscape.
Later this week, attention will turn to the release of the Harmonized Index of Consumer Prices data from the Eurozone and Germany, providing further insights into the economic scenario. Economists at Commerzbank note that Friday’s inflation figures will be crucial, but as of now, there is no discernible trend indicating a weaker Euro.
Earlier this week, European Central Bank (ECB) President Christine Lagarde emphasized the steady approach toward achieving the central bank’s inflation targets. She reiterated the commitment to maintaining current policy measures unchanged for the foreseeable future.
Meanwhile, Bank of England (BoE) Deputy Governor for Markets and Banking, Dave Ramsden, highlighted persistent inflationary pressures in the UK. Ramsden suggested that monetary policy might need to remain restrictive for an extended period to bring inflation back to the 2% target.
Investors are keenly watching for further insights into the BoE’s stance on monetary policy and inflation management in the upcoming speech by Catherine L Mann of the Bank of England. As the market navigates these developments, traders are advised to remain vigilant for potential shifts in the EUR/GBP pair.
