EUR/GBP flirts with 0.8600 mark ahead of Eurozone data
|- EUR/GBP prints mild gains in the early European trading hours.
- The euro focus remains on the economic data and the ECB meeting later in the week.
- Sterling is weighed down by delayed economic reopening, Brexit concerns.
The EUR/GBP price trades with modest gains on Tuesday ahead of the key economic data in the Eurozone. The cross-currency pair makes consolidative moves inside a close trading band of 0.8595-0.8605.
At the time of writing, EUR/GBP trades at 0.8602, up 0.09% for the day.
The euro is struggling to find any significant strength ahead of this week’s key ECB meeting, which makes investors cautious about the central bank’s update on the economy and its next move on the monetary policy, due on Thursday.
The shared currency is up against the sterling, although the advance is not very encouraging for euro bulls, given that the British pound is looking vulnerable amid rising concerns that the UK government is considering delaying the country’s final exit from the covid-19 restrictions in the wake of highly transmissible ‘delta” strain.
On the economic side, the Retail Sales in the Eurozone dropped more than expected in April and Construction Output in May expanded slightly as Italy and France’s growth was offset by a steeper contraction in German activity.
On the other hand, the UK PMI rose to 64.2 in May, much above the market expectations at 62.3, the strongest rate of output growth since September 2014.
Meanwhile, Brexit tension remains a weighing factor for the performance of the cable. In the latest development, the EU is planning to consider tougher retaliatory measures if the UK government fails to implement its post- Brexit obligations over the Northern Ireland border issue.
As for now, traders are bracing for a slew of economic data: German Industrial Production data, German ZEW Economic Sentiment Index, Italy Retail Sales data, Euro Employment change, GDP growth data, and Euro ZEW Economic Sentiment Index.
EUR/GBP Additional Levels
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