EUR/GBP softens below 0.8750 as BoE hints at a slower pace for future cuts

The EUR/GBP exchange rate has softened to around 0.8720 earlier this week. This movement is attributed to the cautious stance from the Bank of England (BoE) regarding its policy outlook, providing relative strength for the Pound against the Euro. Specifically, the indication that the BoE may slow the pace of future rate cuts has impacted market sentiment. This policy change is critical for market participants and could support demand for the Pound. Furthermore, the decline below the 0.8750 level is a significant technical point, suggesting potential for further decline. Investors should pay close attention to this trend and reconsider their positions on the Pound. Overall, while the BoE's stance could positively affect the Pound, the Euro may face downward pressure amid expectations for further measures.