EUR/GBP Price Analysis: Downside risk persist below 0.8600 ahead of UK, Eurozone data
- EUR/GBP has been under consistent selling pressure since April.
- The Eurozone imposed new COVID-19 restrictions as the Delta variant spread.
- The sterling holds gains as the economy is scheduled to open on July 19, despite the threat of a new variant threat.
EUR/GBP edges lower on Wednesday in the Asian session. The pair opened near the 0.8600 mark but failed to preserve the upside momentum and drifted to the downside.
At the time of writing, EUR/GBP is trading at 0.8593, down 0.03% for the day.
The shared currency failed to capitalize on the upbeat economic data released on Tuesday.
The Eurozone Economic Sentiment came at 117.9 in June, above the market expectations at 116.5. The Industry Confidence jumped 12.7 in June as compared to market consensus at 12.3.
The Eurozone Consumer Confidence came at -3.3 in June, above the previous month’s reading at -5.5, supported by the reopening of the economy.
On the other hand, the sterling gained on improved Consumer Credit, which increased by £ 0.28 billion, much above the market expectations at £ 0.24 billion growth. The reading came higher for the first time in the previous nine months.
In addition to that, the UK Department for Business, Energy and Industrial Strategy said that the UK government announced its post-Brexit system for overseeing subsidies to companies to make quicker decisions than when Britain was part of the EU.
The growth differentials in the UK and EU and the central bank’s view on interest rates outlook weigh on the shared currency.
As for now, traders wait for the slew of data: German Unemployment Change and Unemployment Rate, Eurozone Core Inflation data, UK Current Account Data, GDP Growth Rate.
EUR/GBP additional levels