The EUR/GBP maintains its position above 0.8600 before the data of the trade balance of Germany

• The EUR/GBP maintains its daily profits before the publication of the data of the trade balance of Germany.
• The operators are closely monitoring the developments around commercial negotiations between the US and the EU, with expectations that a preliminary agreement will be reached this week.
• The sterling pound can face difficulties due to the growing tax risks in the United Kingdom.

The EUR/GBP goes back its recent losses of the previous session, quoting around 0.8610 during the Asian hours on Tuesday. The torque advances before the publication of the data of the trade balance of Germany scheduled for later in the day.

However, the EUR/GBP crossing lost ground as the euro (EUR) faced challenges after the eurozone retail sales data for May published on Monday. The report showed that sales slowed down with a 1.8% year -on -year growth in May, compared to a revised increase of 2.7% in April. Monthly sales fell 0.7%, reversing prior growth of 0.3%(reviewed from 0.1%), aligning with market expectations.

The operators are closely monitoring development around the commercial agreement between the United States (USA) and the European Union (EU), with the expectation of a preliminary commercial agreement this week. This agreement could allow the EU to set a 10% tariff rate beyond the deadline of August 1 while negotiating a permanent agreement.

The EUR/GBP crossing received support as the sterling pound (GBP) faces difficulties amid the growing tax risks in the United Kingdom (UK). Foreign Minister Rachel Reeves indicated possible tax increases in the Autumn Budget to address a deficit in public finances, possibly driven by the increase in the bill of well -being expenses by the administration. In addition, the Labor Party retreated in the well -being reforms to avoid internal rebellion, with Reeves admitting that there were costs associated with these concessions.

Deutsche Bank analysts indicated an additional 25 basic points in the 4% interest rate by the Bank of England (BOE) in August. The analysts also anticipated that the Central Bank will make two more cuts in November and December.