Now that the central bank meetings are behind us, the next direction for EUR/GBP might come down to which region can better manage the Omicron variant.
Although the ECB pivoted to a slightly less dovish stance last week, it was the BOE that surprised everyone by announcing a 15bps rate hike. EUR/GBP moved lower on the news, however attention now seems to be turning to how the two regions might deal with the surge in Covid cases.
This pair could be in for another interesting week with European countries scheduled to meet to discuss the situation this week, while UK could also possible implement further restrictions over the holiday period.
Check out the following article by one of our senior analysts for a more in-depth insight and potential levels to trade off: