• Modest pullback in EUR/GBP, having ran out of steam at 0.8450

• A touch more hawkish BoE decision allowed the move to extend

• However, UK budget risks matter more, which leans GBP negative

• Thus, EUR/GBP dips should find support into 0.8335-50 (100/55-day MAs)

• Reeves to reveal biggest spending cuts since austerity in budget

• This highlights the fiscal divergence between UK and Germany

• German upper house to vote Friday on fiscal reform. Expected to pass

• In turn, case for EUR/GBP upside remains
EURGBP daily chart

(Justin McQueen is a Reuters market analyst. The views expressed are his own.)