Forex Trading News – EURGBP on a multi month high

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EuroThe Euro early at the European session climbed to a 14 month peak against the British Pound. The single currency was benefited from the overall weakness of the Sterling today, as the country’s PMI – Manufacturing came out at the disappointing level of 54.6, despite the expectations of 56.9, while the reading for March was at 57.1. Though, the PMI – Manufacturing Index is still above the key level of 50. The EURGBP pair surged to a high of 0.8978 at 10:00 GMT and investors expect to see levels of 0.9000, as the ECB is set to proceed to another rate hike to curb the price pressures in the Euro zone, at the same time the BoE policy committee has ignored during the last three meetings the fact that the inflation is two times higher than the limits the Bank has set and they have stated that there is no reason to worry as the effect from the VAT raise will fade soon, while inflation is trimming any hopes for sustainable growth in UK during the present year. Currently the cross pair is trading at 89.72, eyeing the multi month high. The GBPUSD pair is trading at 1.6475, close to the four days low of 1.6467.