The EUR/GBP regained positive traction on Thursday and climbs back closer to the overnight swing high. The pair catches fresh bids on Thursday and prolongs its intraday positive move through the first half of the European session.
The momentum pushes spot prices back above mid-0.8400s in the last hour, closer to over a two-week high touched the previous day.
The back of the Bank of England’s gloomy outlook continues to act as a key factor behind the British pound’s relative underperformance and offers some support to the EUR/GBP cross. It is worth recalling that the UK central bank painted a particularly bleak picture last week and warned that a prolonged economic recession would start in the fourth quarter.
The shared currency, on the other hand, draws some support from the softer US CPI-induced US dollar weakness. This provides an additional lift to the EUR/GBP cross and contributes to the intraday positive move.