• EUR/GBP rises over a third of a percent on Monday as traders continue to discount comments from BoE’s Andrew Bailey. 
• The bank’s Governor said the BoE was going to get more “activist” about cutting interest rates. 
• Upside for the pair is limited, however, as data from the Eurozone reflects a cooling economy. 

EUR/GBP exchanges hands in the 0.8390s after gaining over a third of a percent on Monday as  the Pound Sterling (GBP) resumes its negative trend of recent days, triggered by remarks from the Governor of the Bank of England (BoE) Andrew Bailey. The pair’s gains are likely to be contained, however, by weak data out of the Eurozone on Monday, which showed consumers tightening their belts and German Factory Orders in decline, which, in turn, undermine the Euro (EUR). 

The Euro outperforms the Pound on Monday as markets continue to digest comments from BoE Governor Bailey last Thursday who said that the BoE was going to get more “activist” and “aggressive” about cutting interest rates. His words surprised traders as up until then the BoE had been seen as one of the major central banks least likely to cut interest rates in the near-term. Lower interest rates are negative for the Pound as they reduce foreign capital inflows, and as a consequence Sterling lost over 1.0% against the Euro on the day.