• EUR/GBP may strengthen as a result of a German agreement on the review of debt and a significant boost in state expenditure.
• Vice President of ECB Guindos noticed that President Trump’s policy contributes to greater economic uncertainty than the Covid-19 crisis.
• The Bank of England is expected to keep the interest rate of 4.5% in a political decision on Thursday.

EUR/GBP remains stable about 0.8410 in the early commercial hours in Europe on Monday, after profits in the previous session. The potential of the growth of the cross is strengthened by support for the euro (EUR) after Germany has achieved a contract on debt reform and a significant boost in state expenditure.

On Friday, the coming Chancellor Friedrich Merz assured a contract with green parties and social democrats on Tuesday before a key parliamentary vote to change the borrowing regulations. If the proposal protects the majority of two -thirds, the extended expenditure plan can significantly boost the EUR/GBP cross.

Meanwhile, the Vice President of the European Central Bank (EBC) Luis de Guindos expressed fears on Sunday, stating that President Trump’s policy causes greater economic uncertainty than the Covid-19 crisis, according to Bloomberg. Guindos noticed that the recent US administration seems less likely to multilateralism, which promotes international cooperation – changes in the approach, which he described as the main source of instability.

In addition, a member of the ECB Council and Governor Banque de France François Villeroy de Galhau emphasized the need to strengthen its global impact of the euro. In an interview with * La Tribune Dimanche * at the weekend called for the establishment of a “strong savings and investment union” in order to attract international investors to the euro.

The EUR/GBP cross uses a weaker pound of sterling (GBP) after a Friday report disappointing the British gross product (GDP). The data showed an unexpected 0.1% of the month of the month per month in January, without meeting market expectations in the field of 0.1% expansion. This decline was primarily caused by the weakness of the production sector.

Last month, Bank of England (Boe) reduced its first quarter growth forecast to 0.1%, compared to 0.4% in November. Investors are currently focusing on the Boe monetary policy decision on Thursday, in which interest rates will remain unchanged at 4.5%.