Ella 
In the Asian market on Tuesday, EUR/GBP expanded its losses for the second consecutive day, falling to around 0.8670. EUR/GBP came under downward pressure following ECB President Christine Lagarde’s speech to the European Parliament.
Lagarde pointed out that economic development momentum across the European Union (EU) has generally slowed down, and the pace of job creation has also gradually slowed down. However, the policymaker also stressed that inflation is expected to remain “high for longer” and stressed that interest rates will remain in a restrictive range for as long as necessary.
The European Central Bank faces a complex dilemma as it must strike a delicate balance between responding to inflationary forces and avoiding adverse effects on the domestic economies of the euro zone countries.
Investors are awaiting euro zone Harmonized Index of Consumer Prices (HICP) data due to be released on Friday.
These data sets may provide important information about inflationary pressures in the euro area and may influence trading decisions involving the euro.
In the UK, the Bank of England (BOE) gave up on an expected interest rate hike on Thursday. The decision was prompted by generally lower-than-expected inflation data for the UK economy.
The Bank of England unexpectedly paused its interest rate hike cycle, exacerbating the relative lackluster performance of Sterling (GBP). This is also seen as a factor putting downward pressure on the EUR/GBP pair. It is worth noting that the Bank of England has previously raised interest rates 14 times in a row.
