• The EUR/GBP stands at 0.8549 with mild losses after hitting fresh multi-month lows of 0.8535.
• Daily and four-hour chart indicators show that the bears are in command.
• Eurozone’s PMIs came in mixed, the UK indexes show resilience.

In Wednesday's session, the EUR/GBP pair was trading at 0.8549, reflecting a mild losses but recovered after hitting a low of 0.8535 earlier in the session, it lowest level since September. Ahead of Thursday’s European Central Bank (ECB) decision, markets digest European S&P PMIs from January to continue placing their bets on the easing cycle calendar. 

In that sense, the Eurozone economies are recording mixed performances, with preliminary PMIs for January showcasing lower-than-predicted figures in services but better-than-expected in manufacturing. The UK economy, on the other hand, is showing resilience with stronger-than-expected preliminary January PMIs in both manufacturing and services sectors.

Regarding the European Central Bank (ECB), the markets anticipate the bank to hold steady at 4.0% on Thursday and start it easing cycle on Q2, with a total of 150 bps of rate cuts in 2024. The Bank of England (BOE) on the other hand anticipated to limit its rate cuts due to an improved UK growth outlook and persistently high underlying inflation and investors are betting on less easing than the ECB of 125 bps throughout 2024, which seems to be favouring the Pound over the Euro in the short term