EUR/GBP continues the losing streak that began on Tuesday, trading lower around 0.8650 during the European session on Friday. On Friday, better-than-expected United Kingdom’s (UK) housing data could provide minor support for the Pound Sterling (GBP).
Halifax House Prices (MoM) declined 0.4% in September compared to the market consensus of a 0.8% decline and the previous reading of a 1.8% decline in August.
However, the British Pound (GBP) is grappling with a period of underperformance, primarily influenced by the unexpected decision of the Bank of England (BoE) to pause its rate-hiking cycle in September. This departure from the trend observed since December 2021, where the BoE opted not to raise interest rates, has introduced a challenging dynamic.
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Compounding the situation, the central bank revised its growth forecast for the July-September period from 0.4% to a mere 0.1%. This downward adjustment provides little indication of any inclination to pursue further rate increases.