{"id":31210,"date":"2026-03-20T10:58:37","date_gmt":"2026-03-20T10:58:37","guid":{"rendered":"https:\/\/www.vtmarketsglobal.com\/en\/uncategorized\/31210\/"},"modified":"2026-03-20T10:58:37","modified_gmt":"2026-03-20T10:58:37","slug":"eur-gbp-slips-to-around-0-8620-as-pound-rises-after-boe-and-ecb-keep-rates-steady","status":"publish","type":"post","link":"https:\/\/www.vtmarketsglobal.com\/en\/live-updates\/31210\/","title":{"rendered":"EUR\/GBP slips to around 0.8620, as Pound rises after BoE and ECB keep rates steady"},"content":{"rendered":"EUR\/GBP fell to about 0.8620 in early European trading on Friday, moving below 0.8650. The Pound rose slightly against the Euro after rate decisions from the Bank of England and the European Central Bank.\n\nThe Bank of England kept its interest rate unchanged at 3.75% at its March meeting on Thursday. The Governor said the Middle East conflict is expected to raise inflation in the near term, and referred to shipping through the Strait of Hormuz in relation to energy prices.\n\n<h3>Central Bank Decisions And Market Reaction<\/h3>\nThe European Central Bank also left interest rates unchanged at its meeting on Thursday. It said the war in Iran has made the outlook more uncertain, with risks of higher inflation and weaker economic growth.\n\nAfter the ECB decision, market pricing shifted towards possible ECB rate rises later this year. EUR\/GBP continued to trade lower following the two central bank announcements.\n\nWe remember how last year\u2019s geopolitical turmoil in the Middle East set the stage for central bank divergence. The concerns voiced by the BoE and ECB in March 2025 have since played out, cementing a downward trend in EUR\/GBP. This policy gap is likely to remain the key driver for the pair in the near term.\n\nRecent data from February 2026 confirms this split, with UK core inflation proving sticky at 3.1% while Eurozone HICP has eased to 2.5%. This divergence underpins the BoE&#8217;s current 4.0% bank rate, a full 50 basis points above the ECB&#8217;s main refinancing rate. Consequently, options markets are showing lower implied volatility for downside strikes, suggesting a strong consensus for further GBP strength.\n\n<h3>Trade Setup And Key Risk Factors<\/h3>\nFor the coming weeks, we see opportunities in strategies that benefit from a continued grind lower in EUR\/GBP. Buying put options or establishing put spreads on the pair offers a defined-risk way to position for a test of the 0.8500 level. These positions capitalize on the interest rate differential that favors holding Sterling over the Euro.\n\nThe primary risk remains a sudden de-escalation in the Middle East, which could cause a sharp drop in energy prices and ease pressure on the BoE. We saw a similar pattern in late 2022 when a temporary dip in gas prices caused a brief rally in the pair. Therefore, watching Brent crude futures for any sign of a break below $90 a barrel is critical for risk management.\n\n<b><a href=\"https:\/\/www.vtmarkets.com\/trade-now\/\">Create your live VT Markets account<\/a>\u00a0and\u00a0<a href=\"https:\/\/myaccount.vtmarkets.com\/login\">start trading<\/a>\u00a0now. <\/b>\n<p>\r\n\r\n<p><strong>Start trading now &#8211; Click <a href=\"https:\/\/www.vtmarketsglobal.com\/en\/trade-now\/\">here<\/a> to create your real VT Markets account <\/strong> <\/p>\r\n<!-- \/wp:post-content -->","protected":false},"excerpt":{"rendered":"<p>EUR\/GBP slips to 0.8620 as BoE and ECB hold rates; inflation worries and ECB hike bets rise.<\/p>\n","protected":false},"author":38,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[46],"tags":[],"class_list":["post-31210","post","type-post","status-publish","format-standard","hentry","category-live-updates"],"acf":[],"aioseo_notices":[],"featured_image_src":null,"featured_image_src_square":null,"author_info":{"display_name":"josephine","author_link":"https:\/\/www.vtmarketsglobal.com\/en\/author\/josephine\/"},"_links":{"self":[{"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/posts\/31210","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/users\/38"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/comments?post=31210"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/posts\/31210\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/media?parent=31210"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/categories?post=31210"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/tags?post=31210"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}