EUR/GBP LOSES GROUND BELOW 0.8500, INVESTORS AWAIT BOE'S RAMSDEN SPEECH

EUR/GBP LOSES GROUND BELOW 0.8500, INVESTORS AWAIT BOE'S RAMSDEN SPEECH

The EUR/GBP currency pair has declined to approximately 0.8490 during the early European session on Tuesday.

The Euro (EUR) is weakening against the Pound Sterling (GBP) amid dovish remarks from the European Central Bank (ECB).

ECB policymaker Olli Rehn indicated that the central bank may lower interest rates below the neutral level, which balances economic growth and inflation.

The ECB had recently reduced its benchmark rate to 2.25%, around the upper end of the neutral 1.75%-2.25% range, and further cuts are anticipated in June.

Market participants are pricing in a 50 basis point rate cut by the ECB in June.

This dovish outlook for the eurozone is exerting downward pressure on the Euro, contributing to the decline in the EUR/GBP pair.

Recent economic data from the UK, including stronger-than-expected manufacturing and retail sales figures, have bolstered expectations that the Bank of England (BoE) may maintain higher interest rates for a longer period.

This supportive economic backdrop is strengthening the Pound Sterling against the Euro.

Investors are closely monitoring upcoming speeches from BoE officials, including Deputy Governor Ben Broadbent, for insights into the central bank's future monetary policy direction.

Any indications of a more hawkish stance could further support the GBP and influence the EUR/GBP exchange rate.