Ella 
EUR/GBP has once again found some support around 0.8630, recovering slightly from the near two-week low hit on Tuesday. Spot prices continued to rise steadily during early European trading and climbed to a new intraday high near 0.8600 in the final hour.
The currency has performed relatively well against its British counterparts ahead of a speech by European Central Bank (ECB) President Christine Lagarde later today. In addition, the intraday rise in EUR/GBP lacked any obvious fundamental catalysts, and the gains in EUR/GBP may remain limited amid speculation that the European Central Bank may not raise interest rates for the time being.
Several ECB officials have said the era of monetary tightening may be coming to an end. In fact, French Bank of France Governor Francois Villeroy de Galhau said on Tuesday that it would be wrong to raise interest rates further at this stage. This, in turn, could discourage traders from placing aggressive bullish bets around EUR/GBP, so caution is needed before positioning for any further near-term appreciation moves.
Meanwhile, growing expectations that the Bank of England (BOE) will maintain the status quo in November appear to be easing downward pressure on EUR/GBP. The Bank of England unexpectedly paused its interest rate hike cycle in September and has given few hints of its intention to raise rates. This in turn should act as a “tailwind ear” for the EUR/GBP cross, suggesting that any meaningful decline may still be viewed as a buying opportunity and remains limited.
Neither the Eurozone nor the UK will release any relevant market economic data on Tuesday. As a result, traders will be watching Lagarde’s comments closely for clues on future policy moves, which will impact the euro and create short-term opportunities around the EUR/GBP cross.
