EUR/GBP is rising, nearing 0.8550 as Eurozone Consumer Prices approach.

The pair is climbing for the second consecutive session, reaching around 0.8550 during Monday’s Asian trading hours. The boost comes in the wake of softer Consumer Inflation Expectations reported by the Bank of England (BoE) last Friday, showing a slight increase of 3.0%, down from the previous uptick of 3.3%.

This softer inflation data has sparked speculation about a potential rate cut by the BoE in June, which could weaken the Pound Sterling (GBP) and offer support to the EUR/GBP pair.

Additionally, Monday’s data reveals a significant surge in the Rightmove House Price Index (MoM) for March, up by 1.5%, surpassing the previous increase of 0.9%. On an annual basis, the report indicates a rise of 0.8% compared to the last 0.1%.

However, despite maintaining borrowing costs at record highs during its March meeting, the European Central Bank (ECB) hinted at discussions regarding a potential rate cut. This dovish stance from ECB officials may pose challenges for the Euro. ECB policymaker Pablo Hernandez de Cos suggested on Sunday that the central bank may initiate interest rate cuts in June following a decrease in Eurozone inflation.

The market focus will shift to the Eurozone Harmonized Index of Consumer Prices (HICP), and the trade balance data will be scheduled for release on Monday. Looking ahead to Tuesday, attention will be on various market indicators from the United Kingdom (UK), including the Consumer Price Index, Producer Price Index, and Retail Price Index.

EUR/GBP