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Euro continues to struggle against other major currencies

Euro continues to struggle against other major currencies

A silent data calendar contributed to the muted backdrop yesterday. The only release of any note on either side of the Atlantic was the German Ifo for October. 

Strategists at a number of major banks have expressed caution on holding pounds heading into next week’s Bank of England policy meeting, expecting bullish investors to be disappointed by Governor Andrew Bailey and his team.

Markets anticipate a rise in the Bank Rate of 15 basis points to be announced, which would take the rate off its all-time low to 0.25% but not only must the Bank deliver a hike it must also sound sufficiently ‘hawkish’ to keep alive expectations for a series of further hikes in 2022.

In level terms, the EUR/USD pair has moved back towards the 1.1590 mark whilst the EUR/GBP is within the 1.1815-1.1890 corridor. Elsewhere, GBP/USD is changing hands in a relatively narrow range around the midpoint of the 1.3740-1.3791 trading band.

Datawise, In terms of today, the macro calendar is mainly US-centric and barring any major surprises, they are not expected to have much bearing on the dollar.

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