EUR/GBP Slides Below 0.8600 Ahead of Bailey Speech and Inflation Data
The EUR/GBP pair slipped below the 0.8600 mark in early trading as the British Pound gained strength following upbeat UK economic data.
UK’s Composite PMI rose to 50.7 in June, the fastest pace in three months. This boosted market confidence in the Pound, pushing the euro lower.
All eyes are now on Bank of England Governor Andrew Bailey’s upcoming speech. With recent comments suggesting a cooling job market, traders are looking for hints on possible rate cuts. A dovish tone could further support the Pound.
Meanwhile, markets await the Eurozone inflation report. Strong inflation could revive euro strength, while a weaker reading may put additional pressure on the currency.
Ongoing global concerns—such as trade tensions and geopolitical risks—are also weighing on market sentiment.
Impact:
EUR/GBP may remain under pressure if Bailey stays dovish and UK data holds strong. A hot Eurozone inflation print could trigger a short-term rebound.