Snapshot: EUR/GBP trades at 0.8638, up 0.21% on the session. Firmer UK yields are weighing on Sterling after recent CPI data eased pressure on the Bank of England to cut rates. No major domestic events are scheduled ahead of the New York open.
- Watch for continued upside if EUR/GBP breaks above 0.8640, targeting 0.8650.
- A downside surprise in US data, weakening the DXY, could provide a tailwind for the Euro.
Bias into NY: Mildly bullish EUR/GBP, targeting 0.8650. The divergence in central bank policy outlook, with the ECB retaining a mild easing bias and the BoE remaining data-dependent, favours further Euro strength against the Pound.