EUR/GBP stands on slippery grounds while refreshing the weekly low to 0.8315. If the Bank of England (BoE) delivers a 25bp rake hike next week, the pair could challenge strong support around the 0.8275 mark.

Base rate priced at 1.35% for December

“Current pricing for the BoE's UK base rate is now at a staggering 1.35% for the December BoE meeting.”

In the past, in a deflationary environment with weak global demand, a former BoE might have issued a verbal rate protest against such pricing – in order to weaken GBP. However, we suspect that the BoE is currently welcoming GBP strength in its fight against higher energy prices.”

“A 25bp rate hike next week and no protest against market pricing of rate hikes should see EUR/GBP pressing strong support near 0.8275.”