EUR/GBP bulls step in around 0.8450 with NFP now eyed

EUR/GBP is trading flat on the day between a high of 0.8459 and a low of 0.8444. The pair is consolidating the sell-off that ensued overnight as politics distracted traders momentarily away from key data at the end o the week.

The UK focus was on Prime Minister Boris Johnson’s resignation. It could mean that the government will come up with popular measures, such as another tax cut, in an effort to regain the confidence of voters and party members, analysts at Rabobank argued.

Johnson held a meeting with newly appointed Cabinet ministers hours after resigning as the UK’s prime minister in an attempt to project an image of calm as the ruling Conservative Party begins the process of electing a new leader, who will become the next prime minister. In a statement, Downing Street said no new policies will be announced until the next premier is chosen.

Meanwhile, the focus will be back on the US dollar again ahead of the Federal Reserve meeting later this month and critical data points such as inflation readings and today's Nonfarm Payrolls report. ''Non-farm payrolls should reflect moderating but still healthy jobs growth in June keeping pressure on the unemployment rate and supporting robust growth in average hourly earnings, analysts at Westpac said.