Eurgbp Awaits Eu Inflation Data

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Eurgbp Awaits Eu Inflation Data

Eur/Gbp Trades Above 0.8450, Eu Inflation Data Awaited

Tuesday marks the 5th day in a row of consistent gains for the EUR/GBP pair. The EUR/GBP is sent reading near 0.8450 with a bullish bias ahead of the Eurozone inflation data.

The upside in the EUR is coming from the French elections, which have shown that the far right will not be able to score a majority in the parliament. Now, investors will be looking toward June's HICP data from the Eurozone to get insights into Europe's economy.

France Elections Weigh Heavily On Euro

Although the EU has gone up in recent days, let's not forget that the French elections will continue to be a liability for the Euro currency. As the election situation changes, the EU will also react accordingly which means a lot of volatility for the EUR/GBP pair.

look at the United Kingdom's economy also shows that not everything is as good as it seems. As far as the rate cut timeline from the Bank of England (BoE) is concerned, there's a lot of uncertainty. At the same time, we will also get the outcome of the UK elections on Thursday.

Overall, both sides (EUR and GBP) are under the influence of the French and UK elections. If we look at the UK, the opposition Labour Party is in a strong position to score a win against the ruling conservative party.

Once the election saga is over, the focus of the EUR/GBP will once again shift toward the rate-cut policy of the BoE and ECB. In Europe, the progress of disinflation is satisfactory which means the ECB may start thinking about the rate cuts.

look at the EUR/GBP shows that the next resistance is present at 0.8500, 0.8550, and 0.8600. On the downside, the support levels are seen at the 0.8400, 0.8350, and then the 0.8300 level. Once we get the election outcomes from the UK and France, the real trend of the EUR/GBP will become clear to everyone.

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