09.06.2020 Eur/Gbp Daily Analysis

09.06.2020 Eur/Gbp Daily Analysis

Eur/Gbp today is trading at 0.8886; it is trading higher with 0.12% due to the European Central Banks (ECB) policy announcement. The ECB on Thursday announced that it kept its key interest rates unchanged as expected. More importantly, the bank said it expanded its Pandemic Emergency Purchase Programme (PEPP) by €600 billion to further support the economic recovery.  Assessing the details of the policy statement, "the bank extended the length of the PEPP to June 2021 – a year from now and the initial funds were projected to run out by the autumn. The increase in the size of the PEPP was higher than market expectations and the positive surprise prompted some fresh buying around the euro pairs. And while the bank promised flexibility – potentially purchasing more bonds of hard-hit countries such as Spain and Italy – it refrained from junk bonds. More so, Christine Lagarde, President of the ECB, said that they were confident about finding a solution with regards to German constitutional courts ruling on the ECB's asset purchase program. On the other hand, the British pound was pressured by the rising odds of hard Brexit. The market concerns resurfaced after the BoE Governor Andrew Bailey reportedly told banks to step up plans for the UK to leave the European Union without a trade deal. This comes on the back of the lack of progress in the ongoing Brexit talks, which might undermine the sterling and provide an additional boost to the EUR/GBP cross. Moving ahead.