EUR/GBP Weighed Down by German Retail Sales Disappointment
The EUR/GBP pair is struggling to gain momentum, trading near 0.8570 during early European hours on Tuesday. The Euro's value has softened following weaker-than-expected German Retail Sales data for July.
German Retail Sales fell by 3.4% month-on-month in July and 2.5% year-over-year, both of which were below prior readings and market expectations. This disappointing news has weighed on the Euro, causing it to edge lower against the Pound.
The EUR/GBP cross is currently constrained below key moving averages, with resistance seen near 0.8605 and support around 0.8535. The technical picture remains mildly bearish, with the pair trading below both the 20-day Bollinger simple moving average and the 100-day moving average.
As investors position for the preliminary Eurozone August Harmonized Index of Consumer Prices (HICP) data later on Tuesday, the EUR/GBP pair is under pressure. This upcoming inflation data will be closely watched by market participants, who are already anticipating a rate hike at the European Central Bank's policy meeting on September 10.