• EUR/GBP received support following the speech made by the BoE policymaker Megan Greene.
• BoE’s Greene suggested that additional interest rate cuts are possible as prices are "moving in the right direction."
• The Euro may face challenges as the ECB has indicated that another cut could be on the horizon.

EUR/GBP extends its gains for the second successive session, trading around 0.8340 during Wednesday’s Asian hours. Traders are evaluating the impact of rising geopolitical tensions in the Middle East, which may have adversely affected the trade volumes of risk-sensitive currencies.

The Pound Sterling (GBP) may be facing downward pressure as Bank of England (BoE) policymaker Megan Greene indicated that further interest rate cuts are likely since prices are "moving in the right direction." However, Greene also cautioned that a consumption-driven recovery in the United Kingdom could spark a new wave of inflation, according to Bloomberg.

BoE policymaker Greene also stated that she believed the neutral interest rate had increased since the inflation shock. While most estimates suggest that the neutral rate for the Bank of England is around 3.5%, Greene did not provide a specific figure. The neutral rate refers to the level at which a central bank's policy neither stimulates nor constrains economic growth.

On the Euro's side, inflation in the Eurozone eased in September, falling below the European Central Bank's (ECB) target. The Harmonized Index of Consumer Prices (HICP) increased by 1.8% year-on-year in September, down from 2.2% in August. This marks the lowest rate since April 2021.