• EUR/GBP is auctioning in a narrow range of 0.8280-0.8292 as investors await BOE’s Bailey speech.
• A higher UK inflation print has strengthened the odds of a fourth consecutive rate hike.
• This week, Europe’s Consumer Confidence and core CPI also hold significant importance.

The EUR/GBP pair is oscillating in a five-pip range in the Asian session as investors are awaiting the speech from the Bank of England (BOE) Governor Andrew Bailey and the release of Europe’s Consumer Confidence this week.

The pound bulls are likely to remain on the sidelines till the speech from BOE’s Bailey. The market participants will get insights into the likely monetary policy action by the BOE in May. Higher-than-expected print of the UK inflation at 7% has bolstered the odds of a fourth consecutive rate hike by the BOE policymakers. The BOE has elevated its interest rates to 0.75% yet to contain the soaring inflation. The unstoppable hurricane of inflation in the pound area is compelling for more rate hikes this year.

Meanwhile, the eurozone seems unable to push its interest rates due to the vulnerable growth rate amid higher energy bills. The Ukraine crisis after Russia’s invasion has increased the risk of stagflation in Europe, which is hurting the shared currency.

Going forward, investors are eyeing the Euro’s Consumer Confidence, which will release on Thursday. A preliminary estimate shows the landing of Consumer Confidence at -20 against the previous print of -18.7. Apart from that, investors will also focus on the core Consumer Price Index (CPI) by Eurostat, which is expected to print at 3%, similar to its previous release.