- The next market-mover is likely going to be the UK’s inflation data on Wednesday.
- The Bank of England (BoE)’s policymakers comments earlier in the day were rather dovish as the BoE remains data dependent for further rate hikes.
The EUR/GBP currency cross is trading at around 0.8770 down 0.13% this Tuesday.
The EUR/GBP will likely take its cue from the UK data on Wednesday with the Consumer Price Index (CPI), Retail Price Index and Producer Price Index (PPI) for the month of April. As the BoE is data-dependant a stronger than expected reading in inflation should support the British pound against the euro.
Earlier in the European session, the Bank of England’s officials testified on the economic and inflation outlook before the Parliament’s Treasury Select Committee (TSC). Without any surprises, the comments were rather dovish and cautious. Indeed, BoE’s Governor Carney said that it is "right to wait for more data" and that “households, businesses understand that rates are likely to rise at a gentle pace” as well as “guidance BoE gives is conditional on the economic outlook” he also added. What this means is that the BoE is data-dependant for further rate hikes decisions, that is why Wednesday's inflation data is likely going to be rather important.
Meanwhile, the complex political situation in Italy looms in the background for the euro currency. In fact, the main Italian stock-market index (FTSE MIB) gapped down this Monday while the Italian 2 year debt yield rose to their highest level since 2015.
Traders will also look on Wednesday at the preliminary Eurozone and German Markit PMI (Purchasing Managers' Index) monthly Composite, Manufacturing, and Services reports for May as well as the preliminary German Gross Domestic Product for May as well. A better-than-expected reading can somewhat support EUR.
EUR/GBP 4-hour chart
The EUR/GBP currency cross trend is rather neutral as it is pinched between the 100-period and 200-period simple moving average (SMA) on the 4-hour time-frame. Supports are priced in at 0.8740 demand zone and at 0.8712 swing low while resistances are seen at the 0.8789 high of the day and at the 0.8844 swing high.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended content
Editors’ Picks
![EUR/USD stays below 1.1100, looks to post weekly losses](https://editorial.fxstreet.com/images/Markets/Currencies/Majors/EURUSD/european-euro-coin-on-top-of-american-dollar-bill-11292130_XtraSmall.jpg)
EUR/USD stays below 1.1100, looks to post weekly losses
EUR/USD continues to trade in a narrow range below 1.1100 and remains on track to end the week in negative territory. Earlier in the day, monthly PCE inflation data from the US came in line with the market expectation, failing to trigger a reaction.
![GBP/USD struggles to find a foothold, trades near 1.3150](https://editorial.fxstreet.com/images/Markets/Currencies/Majors/GBPUSD/iStock-157771037_XtraSmall.jpg)
GBP/USD struggles to find a foothold, trades near 1.3150
GBP/USD stays on the back foot and trades in negative territory at around 1.3150 on Friday. The US Dollar holds its ground following the July PCE inflation data and doesn't allow the pair to stage a rebound heading into the weekend.
![Gold retreats toward $2,500 ahead of the weekend](https://editorial.fxstreet.com/images/Markets/Commodities/Metals/Gold/gold-bars-50657756_XtraSmall.jpg)
Gold retreats toward $2,500 ahead of the weekend
Gold stays under modest bearish pressure and declines toward $2,500 in the American session on Friday. The 10-year US Treasury bond yield edges higher toward 3.9% after US PCE inflation data, causing XAU/USD to stretch lower.
![Week ahead – Investors brace for NFP amid Fed rate cut speculation](https://editorial.fxstreet.com/images/Macroeconomics/EconomicIndicator/Employment/NFP/america-back-to-work-gm178972493-25143312_XtraSmall.jpg)
Week ahead – Investors brace for NFP amid Fed rate cut speculation
Here comes another NFP week, with investors eagerly awaiting the results as they try to discern the size and pace of the Fed’s forthcoming rate cuts. The weaker than expected July numbers triggered market turbulence, instilling fears about a potential recession in the US.
![Easing Eurozone inflation to back an ECB rate cut in September](https://editorial.fxstreet.com/images/Macroeconomics/Countries/Europe/Eurozone_countries/Eurozone/eu-flags-flying-at-the-european-commission-building-brussels-belgium-24759579_XtraSmall.jpg)
Easing Eurozone inflation to back an ECB rate cut in September Premium
Eurostat will publish the preliminary estimate of the August Eurozone Harmonized Index of Consumer Prices on Friday, and the anticipated outcome will back up the case for another European Central Bank interest rate cut when policymakers meet in September.
![Moneta Markets review 2024: All you need to know](https://editorial.fxstreet.com/images/IT/Testing/Review/FXSBadgeCertifiedBackg_XtraSmall.png)
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.