FxWirePro: EUR/GBP extends previous session's spike, refreshes 2022 highs above 0.85 handle

Chart - Courtesy Trading View 

EUR/GBP was trading 0.48% higher on the day at 0.8562 at around 10:30 GMT, slightly lower from session highs at 0.8577. 

Comments from ECB’s Villeroy, who suggested that the central bank’s policy rates could return to positive territory by the end of the year, support the euro. 

Further German 10y bund yields, which are climbing to fresh peaks near 1.10% for the first time since later July 2014, add to the upside bias.

On the data front, Industrial Production in Germany contracted at a monthly 3.9% in March.

The British pound remains depressed after BoE policy decision on Thursday. UK central bank raised interest rates by 25 bps and suggested further tightening in the coming months.

The central bank cut UK economic forecasts to 0.25% growth in 2023, denting sentiment and dragging the pound lower across the board.

EUR/GBP extends break above 200-DMA , breaks above 55-week EMA and channel top, raising scope for test of 110-week EMA at 0.8591.