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The EUR/GBP currency pair held in proximity to a 6-week high of 0.8730 on Monday, as the Euro received a boost from hawkish comments by European Central Bank officials.

Over the weekend, ECB Governing Council member Yannis Stournaras said that a modest increase in interest rates could restrain inflation without harming the broader economy.

And, last Friday, Governing Council member Boris Vujcic noted that any decision on a possible rate hike in June would depend on forthcoming data.

Meanwhile, ongoing political instability in the United Kingdom continued to weigh on the Pound.

Britain’s Health Minister Wes Streeting resigned from the government last Thursday, citing irreconcilable differences over the government’s handling of public health policy and budget allocations.

At the same time, UK Prime Minister Keir Starmer is facing calls to step down after the ruling Labour Party suffered heavy losses in last week’s local elections.

These developments are reinforcing the bearish case for Sterling.

Market participants now turn their attention to a series of key UK macroeconomic releases that could influence short-term trading in the Pound. The data calendar begins with the latest monthly employment report on Tuesday, followed by fresh consumer inflation figures on Wednesday.

The EUR/GBP currency pair was last down 0.17% on the day to trade at 0.8710.

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