- The EUR/GBP breaks a two -day profit streak, although it lacks continuation sales.
- The consumer inflation of the Eurozone meets expectations and fails to influence the crossing.
- Investors now expect the speech of the governor of BOE, Andrew Bailey, in search of a significant impulse.
The EUR/GBP crossing goes from the neighborhood of the level of 0.8600, or its highest level since April 23 reached earlier this Tuesday, and remains with modest intradic earnings during the first half of the European session. However, cash prices manage to stay above half of 0.8500 and move little after the publication of the latest inflation figures to the eurozone consumer.
The official data published by Eurostat showed that the harmonized consumer price (HICP) index of the eurozone increased at an annual rate of 2% in June, in line with market expectations after a 1.9% growth reported in May. In addition, the underlying HICP increased a 2.3% year -on -year during the month reported, at the same rate that was seen in May, complying with the 2.3% estimate.
However, the market reaction turns out to be moderate since the data failed to influence market expectations on more interest rate cuts by the European Central Bank (ECB) in the second half of 2025. This, in turn, is considered a key factor behind the relative low performance of the currency shared in front of its British counterpart, exercising some low pressure on the Cross EUR/GBP.
However, the hopes that the European Union (EU) achieves a commercial agreement with the US before the deadline of July 9 of US President Donald Trump helps to limit losses for the EUR. The operators also seem reluctant to carry out directional bets around the EUR/GBP crossing and choose to wait for the comments of the Governor of the Bank of England (BOE), Andrew Bailey, in the ECB forum on Central Banking, in Sintra.
Even from a technical perspective, the lack of continuation sales below half of the 0.8500 justifies caution for aggressive bearish operators. Therefore, it will be prudent to expect a strong sales tracking before positioning for any additional depreciation movement of the EUR/GBP crossing.
Economic indicator
Harmonized index of underlying consumer prices (annual)
The harmonized consumer prices index (IAPC) measures the changes in the prices of a representative basket of goods and services in the European Monetary Union. The IAPC, published by Eurostat Monthly, it is harmonized because the same methodology is used in all member states and its contribution is weighted. The interannual reading compares the prices of the month of reference with those of a year earlier. The underlying IAPC excludes volatile components such as food, energy, alcohol and tobacco. The underlying IAPC is a key indicator to measure inflation and changes in consumption trends. Generally, a high reading is considered bullish for the euro (EUR), while a low reading is considered bassist.
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Last publication:
Mar Jul 01, 2025 09:00 (PREL)
Frequency:
Monthly
Current:
23%
Dear:
23%
Previous:
23%
Fountain:
Eurostat
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
