EUR/GBP remains subdued near 0.8310 during European trading hours on Wednesday, following losses in the previous session. The Euro is facing pressure as money markets have raised their expectations for further European Central Bank (ECB) rate cuts. This shift comes after improvements in inflation control but growing concerns about the Eurozone’s economic outlook.The ECB has already cut its Deposit Facility Rate three times this year, with another reduction widely expected at the December meeting. Remarks from were seen as indicating a weaker economic , prompting markets to anticipate a 25-basis point cut at each meeting through mid-2025.According to sources familiar with the discussions, Reuters reported on Wednesday that European Central Bank (ECB) policymakers have begun debating whether interest will need to drop below the neutral level during the current easing cycle. One source noted, “I think neutral is not enough,” implying that the ECB may aim for significantly lower rates in the coming months. Sterling (GBP) encountered challenges following declining consumer and producer inflation rates, along with weak labor market data in the United Kingdom (UK). These conditions are driving expectations that the (BoE) might introduce a 25 basis point rate cut in November, followed by another in December.On Tuesday, BoE Governor Andrew Bailey emphasized the need for the UK central bank to strengthen its oversight of the less transparent non-banking sector. Speaking at a Bloomberg event in New York, Bailey remarked, “We are nearing a point where we must shift focus from rule-making to surveillance” to better monitor financial activities outside traditional banking.More By This Author:AUD/JPY Moves Above 101.50 Due To Growing Doubts Over BoJ Policy Outlook USD/CAD Maintains Position Above 1.3800 Ahead Of The BoC Policy Decision USD/CHF Depreciates To Near 0.8650, Downside Risk Seems Restrained Due To Higher US Yields
EUR/GBP Depreciates Toward 0.8300 Due To Rising Likelihood Of Another Rate Cut By The ECB
