Eurgbp Weak Before Lagarde Speech

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Eurgbp Weak Before Lagarde Speech

Eur/Gbp Weak Below 0.8500 Before Ecb Lagarde Speech

EUR/GBP is trading below the 0.8500 resistance with a softer tone as Wednesday's session unfolds. The EUR/GBP is seen exchanging hands at 0.8470 with eyes set on the next support at 0.8450 and then 0.8430.

Recently, the EU inflation data was released, which shows that the disinflation trend was still intact in June. This has once again sparked hopes that we may get another rate cut from the European Central Bank, which could further weaken the Euro.

Uk General Elections Keep Gbp Under Pressure

At the same time, the UK general elections are also limiting the gains for GBP as the results are just around the corner. Any surprises from the election results could spark some major volatility in the EUR/GBP pair.

Meanwhile, the Bank of England is also expected to lower the borrowing rate in the country. So, that's also a factor which is bearish for the British Pound.

In a sense, we can say that both the EUR and the GBP are under pressure. However, the only difference is that the prospects of holding GBP appear to be a little better as opposed to the EUR.

HICP (Eurozone Harmonized Index of Consumer Prices) data for June has shown a reading of 2.5 y/y, which was in line with the forecasts. The data released by the Eurostat showed a promising picture that the inflation is indeed slowing down.

However, core HICP actually jumped by 2.9% during the same period, higher than the forecast of 2.8%. According to the chief economist of the ECB 'Phillip Lane', the recent data was in line with the expectations of the ECB. He also added that this will increase the prospects of more rate cuts from the ECB.

Now, the focus is towards the upcoming PMI data from France, Germany, and the Eurozone. Additonally, a lot of ECB officials will also be delivering speeches such as Christine Lagarde, Philip Lane, and Luis de Guindos.

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