EUR/GBP Waits for BoE Decision Amid Narrowing Carry Advantage

The EUR/GBP pair traded near 0.8569 on Thursday, as investors awaited the Bank of England's (BoE) monetary policy decision.

With the BoE expected to leave its benchmark interest rate unchanged at 3.75%, all eyes were on the number of hawkish votes to assess the chances of a rate hike in coming months.

Deutsche Bank strategists suggested that the BoE's recent tactic of pushing back against early market tightening expectations may be losing effectiveness, citing sterling's carry advantage against the euro as starting to narrow.

The EUR/GBP technical picture showed the pair at the midpoint of its recent trading range, with momentum indicators indicating a lack of clear bias.