EUR/GBP declines toward 0.8530 as ECB rate-cut bets deepen

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The EUR/GBP pair falls sharply to near 0.8530 on December's downbeat German Industrial Production data. The industrial output of Germany was down at a sharp pace of 1.6% monthly, while market participants projected a decline of 0.6%. In November, the economic data was contracted by 0.2%. This has deepened the chances of early rate cuts by the European Central Bank (ECB). ECB Cos is confident about inflation declining towards the 2% target. However, ECB executive board member Isabel Schnabel warned that early rate cuts could flare up price pressures again. On the other hand, UK companies are becoming optimistic about the Bank of England's (BoE) rate-cut prospects amid easing price pressures. The Pound Sterling performs better against the Euro as the economic prospects of the United Kingdom's economy are improving again.

#Eur/gbp #Ecb #RateCuts #GermanIndustrialProduction #Inflation #BankOfEngland

https://www.fxstreet.com/news/eur-gbp-declines-toward-08530-as-ecb-rate-cut-bets-deepen-202402070841