EUR / GBP may rise after ECB meeting

EUR / GBP prices, news, analysis

  • Highlights of this session EUR / GBP Traders will be followed by a monetary policy announcement by the European Central Bank’s board of directors followed by a press conference by ECB President Christine Lagarde.
  • Since the central banks of the euro area are widely expected to be dovish, the risk is to turn out to be less dovish than expected and to be strengthened. Euro/GBP And other Eurocross.

EUR / GBP Upward Risk

The focus of this session will be on the ECB’s monetary policy announcement at 1145 GMT (1245 BST), followed by a press conference by Eurozone Central Bank President Christine Lagarde at 1230 GMT. As the ECB recently announced a more flexible inflation targeting strategy, many analysts expect to hear news about changes in the pace and size of their asset purchase programs.

But this is arguably already priced in the euro market, so the main risk is that the ECB is less dovish than expected and the EUR / GBP will recover accordingly-especially in past crosses. Some sessions given the decline.

EUR / GBP Price Chart, Daily Timeframe (March 5-22, 2021)

Source: IG (Click to see larger image)

The ECB is already considered one of the most dovish of the major central banks and is widely expected to be one of the last to tighten monetary policy in this cycle, alongside the Swiss National Bank and the Bank of Japan. be careful. In contrast, the Bank of England appears to be in the middle of the pack, giving Sterling a basic bid for the euro, which is probably already priced.

— By Martin Essex, Analyst

Feel free to contact us on Twitter @ MartinSEssex

EUR / GBP may rise after ECB meeting

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