The key to understanding FX moves is to have a firm grasp of monetary policy as communicated by central banks. The EURGBP is being pressured lower by GBP strength at the time of writing. The GBP Is strengthening on rising inflation pressures revealed in this week’s data but whether it can continue remains to be seen. Eventually, the GBP may start to find sellers stepping in on stagflation fears. At the moment, buyers are dominating on the expectations that the Bank of England will need to hike interest rates more aggressively. However, after a certain point, higher interest rates not only deal with inflation but can ... (full story)