EUR/GBP HOLDS BELOW 0.8600 AHEAD OF ECB RATE DECISION

EUR/GBP HOLDS BELOW 0.8600 AHEAD OF ECB RATE DECISION

EUR/GBP Weakens Ahead of ECB Meeting

The EUR/GBP currency pair is trading below the 0.8600 mark during Thursday's early European session.

This decline reflects market expectations that the European Central Bank (ECB) will implement a 25 basis point rate cut later today. ​

The ECB is widely expected to reduce its deposit rate by 25 basis points to 2.25%.

This move aims to support the eurozone economy, which faces challenges from global trade uncertainties and inflationary pressures.

Analysts project that the eurozone's GDP growth will be modest at 0.9% in 2025.

This outlook, coupled with persistent inflation below the ECB's 2% target, has prompted the central bank to consider further rate cuts to stimulate economic activity.

Investors are closely monitoring ECB President Christine Lagarde's statements for indications of future monetary policy directions.

Any signals regarding the pace of future rate cuts or economic forecasts could significantly impact the EUR/GBP exchange rate.