EUR/GBP and European Economic Data💱 Forex•EUR/GBP

EUR/GBP Slides as Data & Central Bank Decisions Loom

February 3, 2026, 06:02 PM158 words7 sourcesAI-Generated · Reviewed by editorial team
EUR/GBP
EUR/GBP Slides as Data & Central Bank Decisions Loom

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The EUR/GBP pair is currently trading near a five-month low, pressured by a combination of strengthening US economic data, shifting option flows, and anticipation of key central bank decisions. Bank of America’s quantitative signals have turned bearish on EUR/GBP, citing a break below the 200-day SMA as a potential trigger for further declines towards 0.85. Increased put option activity ahead of ECB and BoE meetings reinforces this bearish outlook. While the ECB is expected to hold rates steady, recent UK inflation data complicates expectations for near-term easing. EUR/USD has experienced volatility, initially slipping below 1.1800 due to strong US PMIs and Fed speculation, before a slight uptick amid easing tensions. The ECB views the recent dip in headline inflation as temporary, suggesting no immediate policy changes. Fed officials, including Thomas Barkin, are closely monitoring inflation and employment data, maintaining a cautious approach to monetary policy. Australian building permits data also contributed to market sentiment, showing a significant decline.

Source Articles

This article is based on analysis of 7 source articles from our news database.

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