EUR/GBP sees worst trading day since July

The Pound Sterling is up against the Euro by 0.5%, while hawkish remarks from Bank of England policymakers have helped the pound to surge. Before Wednesday’s trading session, the Euro is trading near its lowest point and showing little signs of recovery.

In testimony before the Treasury Committee of the UK Parliament, policymakers stressed the need for stricter measures to fight inflation, according to the BoE.

Policymakers also noted that inflation pressures are expected to increase in 2024 and that too much focus on current headline figures is a mistake.

The EU Consumer Confidence for November is one of the light economic calendar items on Wednesday. It is predicted to increase from -17.9 to -17.6. The simultaneous Purchasing Managers’ Index (PMI) reports for the EU and the UK on Thursday will be of particular interest to investors.

While the UK’s S&P Global/CIPS Composite PMI is predicted to remain stable at 48.7, the EU’s HCOB Composite PMI for November is predicted to show a slight improvement.

Should the Manufacturing component of the PMI fail to increase from 44.8 to 45.0 as markets are currently projecting, the UK’s steady reading forecast may be jeopardized.