The euro (EUR) is facing some pressure against the British pound (GBP) as traders digest the recent monetary policy moves from the European Central Bank (ECB).
Currently, EUR/GBP is hovering around $0.8530, which is its highest point in over a week, after peaking at $0.8544 earlier in the day.
Following a 25 basis point interest rate hike in June, the ECB has kept three of its key interest rates steady: the deposit facility rate, the main refinancing rate, and the marginal lending facility rate remain at 2.25%, 2.40%, and 2.65%, respectively.
In its latest Monetary Policy Statement, the Executive Board emphasized its ongoing commitment to maintaining inflation at the medium-term target of 2%. However, they also noted that there’s still a lot of uncertainty and that the full effects of the energy crisis on inflation have yet to materialize.
The ECB mentioned that it is closely observing both the intensity and duration of this energy shock, along with any indirect impacts. Future interest rate decisions, they stressed, will hinge on inflation expectations and an assessment of associated risks.
ECB President Christine Lagarde stated in a speech following the announcement that energy price inflation is expected to keep headline inflation significantly above the ECB’s target until at least the first half of 2027, predicting a moderation afterward. She indicated that growth risks lean downward while inflation risks trend upward, adding that the conflict in the Middle East presents a “source of significant uncertainty.”
As tensions in the Middle East rise again—pushing oil prices back up—there’s a chance inflation may pick up speed after June’s cooling off. As a result, expectations for more ECB rate hikes are currently on pause. Traders are completely factoring in a possible rate increase at the September meeting.
In the meantime, as inflationary pressures persist, there’s growing speculation about the Bank of England (BOE) raising interest rates. Still, the pound hasn’t gained much traction, with market focus shifting towards the new prime minister’s evolving political landscape and uncertainty about the government’s fiscal plans.
today’s euro price
The table below shows the percentage change of the Euro (EUR) against the major listed currencies today. The euro was the strongest against the New Zealand dollar.
| USD | EUR | GBP | JPY | CAD | australian dollar | new zealand dollar | swiss franc | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.29% | 0.27% | 0.38% | -0.08% | 0.30% | 0.67% | 0.27% | |
| EUR | -0.29% | -0.01% | 0.09% | -0.38% | 0.00% | 0.40% | -0.02% | |
| GBP | -0.27% | 0.01% | 0.09% | -0.39% | 0.01% | 0.41% | -0.01% | |
| JPY | -0.38% | -0.09% | -0.09% | -0.46% | -0.08% | 0.29% | -0.11% | |
| CAD | 0.08% | 0.38% | 0.39% | 0.46% | 0.37% | 0.76% | 0.33% | |
| australian dollar | -0.30% | -0.00% | -0.01% | 0.08% | -0.37% | 0.40% | -0.01% | |
| new zealand dollar | -0.67% | -0.40% | -0.41% | -0.29% | -0.76% | -0.40% | -0.43% | |
| swiss franc | -0.27% | 0.02% | 0.01% | 0.11% | -0.33% | 0.00% | 0.43% |
The heat map shows the percentage change between major currencies. The base currency is selected from the left column and the quote currency is selected from the top row. For example, if you select EUR from the left column and move to USD along the horizontal line, the percentage change displayed in the box represents EUR (Basic)/USD (Quote).
