EUR/GBP benefits from remarks by BoE’s Bailey

The Euro breaks above 0.8800 to hit session highs at 0.8855. the EUR/GBP pair is trading at 0.8841 at the time of writing. Bank of England governor Andrew Bailey announces the end of the emergency support program and subsequently the pound falls.

Additionally; BoE governor warns about unprecedented volatility in the long end of the bond market. The Euro has broken higher against the British pound on Tuesday, breaching resistance at the 0.8800 area to hit two-week highs at 0.8855. BoE Governor, Andrew Bailey’s comments regarding the latest monetary policy measures have practically crushed the pound

Bailey has shown BoE’s concerns about the “unprecedented volatility in the long end of the gilt market” and urged pension fund managers to finish rebalancing their portfolios by Friday. The Bank of England will end its emergency support program for the country’s fragile bond market.

The Bank expanded the bond-buying scheme last Tuesday in order to include inflation-linked debt, two weeks after having launched it, aiming to confront the turmoil created by Prime Minister Liz Truss with her announcement of tax cuts as a part of a set of unfunded economic reforms.