EUR/GBP Holds Steady Ahead of ECB Rate Hike Bets

The EUR/GBP currency cross has remained steady in recent hours after experiencing volatility earlier this week. Despite some fluctuations, it continues to hover around the 0.8580 level.

This relative stability is likely due to market anticipation of the European Central Bank's (ECB) upcoming monetary policy decision, which is expected to be announced on Thursday. Economists predict that the ECB will raise interest rates by 25 basis points to 2.5%, driven by rising energy prices caused by the ongoing US-Iran conflict.

ING's global head of macro Carsten Brzeski has confirmed this expectation, stating 'We expect the ECB to hike rates by 25 basis points. Another insurance rate hike.' or rather a dovish rate hike as he put it.