EUR/GBP struggles to gain ground ahead of German Retail Sales and CPI data

EUR/GBP attracts some sellers in Wednesday’s European session.
ECB’s Lagarde said wage data would be crucial in determining when to start monetary easing.
The Bank of England (BoE) is anticipated to hold rates steady at 5.25% at its January meeting.
The December German Retail Sales and the CPI inflation data will be due later on Wednesday.

Lallalit Srijandorn FXStreet

The EUR/GBP cross remains on the defensive below the mid-0.8500s during the early European session on Wednesday. Investors await the German Retail Sales and Consumer Price Index (CPI) data on Wednesday for fresh impetus. The cross currently trades around 0.8535, losing 0.05% on the day.

The December German Retail Sales and the preliminary CPI inflation data on Wednesday could influence the European Central Bank (ECB) rate path. The CPI figure is expected to drop to 3.3% YoY from 3.7% in the previous reading, while Retail Sales is projected to increase by 0.7% in December after sliding by 2.5% in November. If the report shows weaker-than-expected data, this could exert some selling pressure on the Euro (EUR) against the British Pound (GBP).

ECB President Christine Lagarde said on Tuesday that it’s premature to begin talking about cuts while adding that wage data would be crucial in determining when to start monetary easing. According to a Reuters analysis of LSEG data, investors have priced in nearly 60% odds of first rate cuts in April.

On the other hand, the Bank of England (BoE) will announce its monetary policy decision on Thursday. Investors anticipate the BoE to hold rates steady at 5.25% at its January meeting. While the central bank may soften its message about the prospect of future cuts, investors expect no rate cuts in the upcoming months. This, in turn, might lift the GBP and act as a headwind for the EUR/GBP cross.

Looking ahead, market participants will keep an eye on German Retail Sales, CPI inflation, and Unemployment Rate. The BoE monetary policy meeting on Thursday will be in the spotlight. Traders will take cues from the event and find trading opportunities around the EUR/GBP cross.

EUR/GBP

Overview
Today last price	0.8536
Today Daily Change	-0.0006
Today Daily Change %	-0.07
Today daily open	0.8542

Trends
Daily SMA20	0.858
Daily SMA50	0.8614
Daily SMA100	0.8647
Daily SMA200	0.8632

Levels
Previous Daily High	0.8568
Previous Daily Low	0.8517
Previous Weekly High	0.8584
Previous Weekly Low	0.8521
Previous Monthly High	0.8715
Previous Monthly Low	0.8549
Daily Fibonacci 38.2%	0.8548
Daily Fibonacci 61.8%	0.8536
Daily Pivot Point S1	0.8517
Daily Pivot Point S2	0.8491
Daily Pivot Point S3	0.8466
Daily Pivot Point R1	0.8567
Daily Pivot Point R2	0.8593
Daily Pivot Point R3	0.8618

Author

Lallalit Srijandorn

FXStreet

Lallalit Srijandorn is a Parisian at heart. She has lived in France since 2019 and now becomes a digital entrepreneur based in Paris and Bangkok.

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