EUR/GBP flirts near 0.8580 on German polls, ECB Lagarde speech eyed

After opening the session on a higher note, EUR/GBP loses part of its earlier momentum and hovers in a narrow trade band.  At the time of writing, EUR/GBP is trading at 0.8571, up 0.12% for the day.

The shared currency losses the earlier gains following the outcome of the German elections update. In the latest development Germany’s centre-left Social Democrats (SPD) have marginally won the country’s federal elections, beating the ruling conservative party. The SPD gained 25.7% vote, while the existing conservative CDU/CSU block gathered 24.1%.

Earlier in the week,the European Central Bank (ECB) President Christine Lagarde downplayed the inflationary concerns citing  most of the reasons as transitory.

Brexit woes continued to pressurise the sterling prospects. The European Union (EU) warned  Britain that triggering a safeguard clause in its Brexit deal governing trade with Northern Ireland (NI) was “not helpful” and the country should pursue solutions as per Reuters. On the economic side, the UK Consumer Confidence fell 5 points to -13, the steepest decline since October 2020.

As for now, traders are waiting for the Bank of England’s (BoE) Governor Andrew Bailey Speech, German Gfk Consumer Confidence to gauge market sentiment data.

EUR/GBP additional levels