The EUR/GBP pair fell to an intraday low of 0.8781 on Wednesday as optimistic UK inflation data reinforced hawkish expectations from the Bank of England (BoE). Despite this, the cross-currency pair had surged the most in three weeks the day before, as Brexit uncertainty mixed with hawkish comments from European Central Bank (ECB) officials.

The Consumer Price Index (CPI) in the United Kingdom increased by 10.4% year on year in February, exceeding market predictions of 9.8%, while the Core CPI increased by 6.2%, exceeding market expectations of 5.8%. The stronger British inflation numbers may let the Bank of England (BoE) to play well in its anticipated final hawkish dance on Thursday, benefiting EUR/GBP bears.

In other news, Martins Kazaks, an ECB policymaker, stated on Tuesday that “uncertainty in financial markets is significant, but European banks are sufficiently funded.” He also stated that there is no need to compare the current scenario to the situation in 2008. Furthermore, Pablo Hernandez de Cos, ECB board member and president of the Spanish central bank, stated that “market predictions of a 3.25% rate peak cannot be validated.” Joachim Nagel, the head of the European Central Bank and the Bundesbank, recently indicated that “there is still some distance to go, but we are nearing restrictive area.”

EUR/GBP traders should keep an eye on Brexit events in the House of Commons as well as ECB President Christine Lagarde’s speech for new impetus. Yet, the Bank of England (BoE) pronouncements on Thursday are critical for cross-currency pair traders to monitor, as the British central bank appears to be running out of steam to support the hawkish steps.