Euro rose in European trade against the UK pound, extending gains for the sixth session in row and scaling four-week highs amid ongoing forecasts about upcoming interest rates in Europe and the UK, and analysts now expecting three consecutive ECB rate hikes.
Conversely, analysts only expect one additional rate hike by Bank of England in May before pausing policy tightening and reviewing developments in the UK.
EUR/GBP rose 0.2% to 0.8864, the highest since March 23, with a session-low at 0.8838, after rising 0.35% on Friday, the fifth profit in row, and the longest such streak of gains since late January.
European Rate Forecasts
A Bloomberg opinion poll showed the European Central Bank is likely to raise interest rates by 25 basis points at the May, June, and July meetings.
ECB officials have recently asserted the importance of extending policy tightening to combat inflation and bring prices back to targets.
UK Rates
Bank of England is widely expected to raise interest rates by 25 basis points at the May meeting, with estimates about other rate hikes withheld until further assessment of economic developments in the UK.
Now investors await important UK data later this week, that include consumer prices and labor sector data.