EUR/GBP has worst trading day since July

As the British Pound recovers further ground across the G10 currencies, the EUR/GBP pair is experiencing its worst trading day since 13 July.

The pair dropped during the American session and hit the lowest level in almost a week at 0.8836. It is hovering around 0.8850, namely down by almost 90 pips, having the worst performance since July as the pound extends its recovery. The pair is trading at 0.8860 at the time of writing.

The Bank of England’s surprise announcement, Wednesday, helped government bonds and also assisted the pound’s performance that is rising across the board on Thursday.

UK PM Liz Truss defended her economic plan on Thursday amid mounting criticism. Recent events created instability on Truss’s administration. Data released on Thursday showed the Consumer Price Index in Germany reached 10% in September, the first time 70 years to hit double digits.

The inflation data has no immediate impact on the euro. Markets continue to expect the ECB and the BoE to keep rising interest rates. Afterwards EUR/GBP dropped further as GBP/SUD rose back above 1.1045 at the time of writing. The EUR/USD pair also printed fresh highs around 0.9783 but, anyway, rose a slower pace.