Reuters has reported, citing unnamed sources, that the European Central Bank (ECB) is expected to raise its inflation forecast while cutting economic growth projections, aligning with market expectations.

An increase in the inflation forecast brings the ECB closer an interest rate hike at its Governing Council meeting on Thursday. As a result of this report, the Euro surged. 

The EUR/USD pair gained more than 30 pips, approaching Tuesday's highs, and is currently hovering around 1.0760. EUR/GBP broke above 0.8600, reaching the highest level in almost a month.