On Friday, the EUR/GBP exchange rate was quiet and range-bound.
Sterling continued to be weighed down by the BoE’s dovishness and COVID-19 concerns.
The euro bulls were put on the defensive as the dollar strengthened, limiting their gains.
During the mid-European session, the EUR/GBP cross oscillated between modest gains and slight losses, and was observed lingering around the 0.8600 line, essentially unchanged for the day.
On the last trading day of the week, the cross lacked any firm directional bias and remained confined in a range just below two-and-a-half-week highs touched the previous session. The strong bullish mood surrounding the US dollar kept euro bulls on the defensive and limited the EUR/GBP cross’s upward potential.
The British pound, on the other hand, was dragged down by BoE Governor Andrew Bailey’s dovish remarks, which stated that the central bank should not overreact to temporarily high inflation. Concerns over the emergence of the more contagious Delta version of the coronavirus also worked as a drag on the pound.
This, in turn, helped restrict the EUR/GBP cross’s downside potential, resulting in a subdued/range-bound price action for the majority of Friday’s trade. Investors are now anticipating the release of the US nonfarm payrolls report, which might cause some market volatility and provide some short-term trading possibilities around the cross./n
