EUR/GBP holds its position above 0.8500 despite the dovish ECB

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EUR/GBP holds its position above 0.8500 despite the dovish ECB
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EUR/GBP trades around 0.8510 during the early European hours on Monday, struggling due to dovish comments from European Central Bank (ECB) Chief Economist Philip Lane.

EUR/GBP experienced challenges as ECB officials suggested an interest rate cut in June. ECB Chief Economist Phillip Lane said that “there is enough in what we see to start interest rate cuts.” The Pound Sterling may struggle as moderated UK's annual inflation has tempered expectations of BoE’s rate cut in June. EUR/GBP trades around 0.8510 during the early European hours on Monday, struggling due to dovish comments from European Central Bank Chief Economist Philip Lane.

In the United Kingdom , the market is closed due to the Spring Bank Holiday on Monday. The Pound Sterling received support as the traders digested lower-than-anticipated Retail Sales data released on Friday. April saw a notable 2.3% decline in the monthly volume of sales of goods by retailers in the UK, far worse than the expected 0.4% downturn. On an annual basis, sales dipped by 2.7%, compared to the expected 0.2% decrease.

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