Against a pound boosted by the Bank of England, the European currency is at its lowest in 20 months. Currency traders expect a tightening of monetary policy from the Bank of England (BoE).

The euro fell further against the British pound on Tuesday, hitting a low in more than a year and a half. Around 8:50 a.m. GMT (10:50 a.m. CET), the euro fell 0.13% to 84.21 pence per euro, after falling to 84.12 pence, its lowest since February 2020. The European Central Bank (ECB) , whose next monetary policy decision is expected on Thursday, will most likely opt for the status quo, maintaining very loose monetary policy to avoid nipping the economic recovery in the bud. The currency is in high demand as the markets are increasingly convinced that the BoE will soon raise its interest rates.