EUR/GBP Forecast: Pair Moves Above 0.8600 Ahead of German Inflation and UK GDP Data
Forex news today shows the EUR/GBP currency pair trading slightly higher above the 0.8600 level. This mild gain comes as traders wait for fresh economic data from both the Eurozone and the UK.
The euro is getting support from positive trade talks between the EU and the US. News suggests a possible deal may avoid new tariffs on EU goods, which is helping to lift market mood slightly. At the same time, traders are focused on Eurozone inflation data from Germany, expected later today. If inflation comes in higher or lower than expected, it could move the euro sharply.
On the other hand, the GBP outlook remains cautious as the UK’s GDP data for May is due tomorrow. Analysts expect a small growth of 0.1% after a 0.3% drop in April. A better-than-expected number could strengthen the British pound.
The Bank of England is also in focus. Markets believe the BoE could cut interest rates by 25 basis points in August after hints from Governor Bailey about gradual easing.
This EUR/GBP forecast is being closely watched by traders for any signs of a bigger breakout or pullback.
Impact :
EUR/GBP might stay above 0.8600 if euro news stays positive. But strong UK data or lower German inflation could pull the pair back slightly in the short term.