EUR/GBP Stuck in Narrow Range After ECB's Interest Rate Hike

The EUR/GBP cross has traded within a narrow range for over a week, showing only a modest positive bias on Thursday.

The European Central Bank's (ECB) widely expected interest rate hike had a limited impact on the Euro's value against the British Pound, as markets had already priced in this move and did not trigger a breakout.

The ECB raised its three key interest rates by 25 basis points to 2.50%, citing inflation pressures from the ongoing war in the Middle East and expectations of continued high inflation above the 2% target for an extended period.

ECB President Christine Lagarde noted that while headline inflation is likely to stay well above the ECB's target, she expects it to return to the 2% target by the end of 2027.