EUR/GBP retreats sharply from 0.7715

FXStreet (Córdoba) - EUR/GBP jumped to 0.7713, reaching the highest price since January 15 after reports suggested that the European Central Bank would propose to buy 50 billion euros per month tomorrow. The pair was already trading higher boosted by the Bank of England minutes, that showed a unanimous vote to keep rates unchanged, which represents a dovish change compared to recent meetings were two Monetary Policy Committee members asked for a rate hike.

After reaching levels above 0.7700, the pair lost momentum and pulled back toward 0.7650. Currently trades at 0.7655, up 35 pips for the day but far from the highs.

The euro is rising against the pound the day before the important ECB meeting but continues to trade near multi-year lows. Volatility is expected to rise when the central bank announces the decision (12:45 GMT) and also during Draghi’s press conference (13:30 GMT).