- EUR/GBP regained positive traction on Thursday amid some renewed selling around the sterling.
- Upbeat UK employment details failed to impress the GBP bulls or provide any meaningful impetus.
- Investors might now refrain from placing aggressive bets as the focus remains on the ECB decision.
The EUR/GBP cross maintained its bid tone through the early European session and was last seen trading near the top end of its daily range, just below the 0.9100 mark.
Following the previous day’s modest pullback, the cross managed to regain positive traction on Thursday and was being supported by the emergence of some fresh selling around the British pound. The EUR/GBP cross held on to its gains and had a rather muted reaction to the UK employment details.
According to the Office for National Statistics, the number of people claiming jobless benefits unexpectedly fell by 28.1K in June. Adding to this, the official unemployment rate remained unchanged at 3.9% for May as compared to 4.2% anticipated, albeit did little to impress the GBP bulls.
On the other hand, the shared currency was seen consolidating its recent gains, led by hopes that the European leaders will make progress in agreeing on a roughly €1.85 trillion package. The package includes €750 billion in funds aimed at aiding the recovery of the region’s worst-hit economies.
Investors, however, seemed reluctant to place aggressive bullish bets, rather preferred to move on the sidelines ahead of the European Central Bank (ECB) monetary policy decision. The ECB is expected to maintain the status quo and hence, the key focus will be on the post-meeting news conference
Comments by the ECB President Christine Lagarde might influence the common currency and infuse some volatility around the euro pairs. Nevertheless, the EUR/GBP cross remains well within the striking distance of two-week tops set on Tuesday, with bulls awaiting a sustained move beyond the 0.9100 mark.