EUR/GBP tries the breakout to the upside around 0.8370; BOE policy is in focus
The EUR/GBP pair has broken above the consolidation created between 0.8364 and 0.8374. On account of lower economic statistics, the BOE will likely adopt a less aggressive tone. The preliminary estimate for Eurozone Retail Sales is -1.7%, compared to 0.2% in the previous edition.

In early Tokyo, the EUR/GBP pair is attempting the breakout to the higher from the consolidation created between 0.8364 and 0.8374. On a larger scale, the bulls of the shared currency have resisted a recapture of a three-month low at 0.8350. The pre-anxiety period preceding the Bank of England's (BOE) interest rate decision will cause violent fluctuations in the counter.
Thursday's interest rate decision by the BOE is anticipated to result in a 25-basis-point increase in interest rates (bps). The decision by BOE Governor Andrew Bailey to raise rates by a quarter-of-a-percent will raise the interest rate to 1.5 percent.
Notably, price pressures are greatest in the pound zone, and the BOE has been reluctant to announce interest rate rises. In addition, the BOE is the first central bank to raise interest rates following the outbreak.
The inflation rate in the sterling zone has risen to 9.4 percent, and further acceleration to double digits is inevitable given that price pressures have not yet shown signs of abating.
Focus is placed on Retail Sales statistics for the eurozone. The early estimate for Eurozone Retail Sales is -1.7%, which is significantly worse than the previous release of 0.2%. Investors must be aware that people in Europe are experiencing the headwinds of increased pricing pressures, which are compelling them to make larger payments despite a little change in amount purchased. Consequently, the Retail Sales figures should be greater. And a lower estimate of economic demand suggests a significant decline in retail demand.
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