Euro Weakens Against Pound Amid Oil Rally and Hawkish BoE

The Euro has weakened against the Pound as higher Oil prices and a more hawkish tone from the Bank of England weighed on the common currency.

Despite an initial advance above 0.8610, EUR/GBP retreated to 0.8591, still confined within an upward parallel channel.

The failure to hold above 0.8600 saw selling interest increase, with technical signals showing fading bullish momentum and bears targeting support near recent September lows at 0.8592.

BoE Governor Andrew Bailey's comments on Friday that it is becoming increasingly difficult to keep interest rates unchanged while price pressures remain elevated added to the pressure on the Euro.