EUR/GBP is hovering around 0.8330 ahead of the Bank of England’s monetary policy report hearings

In the Asian session, the EUR/GBP is trading in a narrow range of 0.8330-0.8345, as investors await the Bank of England’s (BOE) monetary policy report hearings on Wednesday. The cross has remained volatile in recent trading sessions due to the obscurity of the Russia-Ukraine spat. Market participants, however, have been underpinning the pound against the shared currency, as the latter may be more impacted by the escalation of sanctions against Russia.
Both economies have imposed sanctions in response to Russia’s aggression against Ukraine. In a tweet on Tuesday, British Foreign Minister Liz Truss stated that her government will impose new sanctions on Moscow in response to their violation of international law and assault on Ukraine’s sovereignty and territorial integrity.

Later, Britain imposed sanctions on five Russian banks: Rossiya bank, IS bank, General bank, Promsvyazbank, and Black Seabank, while Germany blocked a new gas pipeline from Russia, despite the fact that Germany relies on Russia for domestic gas. According to The New Statesman, Russia accounts for 65 percent of Germany’s natural gas imports and nearly 40 percent of the EU’s.

Meanwhile, the European calendar is jam-packed with events on Wednesday, beginning with a speech by European Central Bank (ECB) member Frank Elderson and Vice President Luis De Guindos. Eurostat will also publish the Core Consumer Price Index (CPI). While BOE member Silvana Tenreyro will provide insights into their upcoming monetary policy decision-making.