EUR/GBP was flat on Friday after retreating from a 0.8585 high on Thursday, with
sellers testing the rising trendline from mid‑July. Sterling recovered some
losses after the Bank of England held Bank Rate at 3.75% as expected but
recorded three hawkish dissents; Governor Bailey said he would be willing to
tighten policy if a Middle East conflict pushed oil above $100, providing
near‑term support for the pound. In Europe, Germany’s preliminary HICP rose to
2.8% YoY in July from 2.4% in June; alongside strong preliminary GDP prints for
Germany and the euro area, the data bolsters the case for an ECB rate hike in
September and limits the euro’s downside.
