- EUR/GBP has extended its recovery move above 0.8880 as the focus shifts to Eurozone inflation.
- The ECB would hike rates further if banking jitters have no or weak impact on the financial situation.
- The UK economy is expected to witness a deep recession as inflation is extremely sticky and growth is getting squeezed.
The EUR/GBP pair has stretched its recovery above 0.8800 in the Asian session. The cross has shown a gradual decline in hopes that the European Central Bank (ECB) will continue to hike rates further to tame the sticky inflation. The asset is expected to show a power-pack action ahead of the release of the preliminary Eurozone Harmonized Index of Consumer Prices (HICP) and the Gross Domestic Product (GDP) (Q4) figures on Friday.
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