EUR/GBP Flat as ECB and BoE Weigh Policy Paths Amid Inflation Risks
The EUR/GBP cross is trading flat as investors weigh the policy paths of the European Central Bank (ECB) and the Bank of England (BoE).
The pair has been under pressure after failing to break above the 0.8660 resistance area, a former support level that is now acting as resistance.
The ECB and BoE are facing a difficult balance between rising inflation and weaker growth, with both central banks expected to raise borrowing costs in the coming months.
ECB policymaker Peter Kazimir said the latest rate hike was unavoidable due to high energy prices, which remain a key factor for the policy outlook. ECB President Christine Lagarde also noted that there are upside risks to inflation and downside risks to growth.
This week's economic data will be closely watched, with UK GDP, German preliminary inflation and Retail Sales scheduled for Wednesday, followed by the Eurozone's preliminary inflation report on Friday.