• EUR/GBP extends its losing streak due to hawkish sentiment surrounding the BoE maintaining higher rates for a longer.
• BoE Governor Bailey also advised against hastening additional rate cuts at the Jackson Hole Symposium last week.
• The cooled-off inflation in Germany and Spain has fueled expectations of a rate cut by the European Central Bank.

EUR/GBP continues its losing streak for the eighth consecutive session, trading around 0.8410 during the early European hours on Friday. The EUR/GBP cross may extend its decline as the Pound Sterling (GBP) receives support from hawkish sentiment surrounding the Bank of England (BoE) maintaining higher interest rates for a longer period compared to the European Central Bank (ECB).

At the Jackson Hole Symposium last week, BoE Governor Andrew Bailey stated that the second-round effects of inflationary pressures would be less significant than anticipated. However, Bailey also advised against hastening additional interest rate cuts, according to Reuters. The BoE reduced rates by 25 basis points to 5% on August 1, and money markets are pricing in an additional 40 basis points of cuts by the end of the year.

In August, UK Nationwide Housing Prices experienced a 2.4% year-on-year increase, up from 2.1% in July. This marked the sixth consecutive period of rising house prices and the strongest growth since December 2022. However, on a monthly basis, house prices declined by 0.2%, following a 0.3% increase in July, defying market expectations of a 0.3% rise.