19.06.2020 Eur/Gbp Daily Analysis

19.06.2020 Eur/Gbp Daily Analysis

Eur/Gbp today is trading at 0.9029, it is trading higher with 0.17% mainly because the European Central Bank will announce the results of its latest long-term lending operation, which is the first at which banks can borrow at the new lower limit of as low as 1%. Given the doubts over the effectiveness of negative interest rates, a high take-up would constitute a vote of confidence in the ability of the ECB to keep supporting the economy through monetary policy (and vice versa). ECB board member Isabel Schnabel last week trailed expectations of around 1.4 trillion euros in demand. The TLTRO results will be followed by the Bank of England's policy announcement at 7 AM ET (1100 GMT). Sterling edged lower in early trading amid expectations that the central bank will boost its quantitative easing program by between 100 and 150 billion pounds. The U.K. economy has been particularly hard hit by the coronavirus outbreak and is forecast to shrink the most of all G7 economies this year by the Organization for Economic Cooperation and Development.