Snapshot: EUR/GBP is hovering near 0.8500, little changed on the session, as yesterday’s UK CPI data continues to support a hawkish repricing of BoE expectations. Today’s key event is the 07:00 London GBP Retail Sales print.
- The UK CPI report showed a notable drop in headline and core inflation, yet services CPI remains stubbornly high, dampening hopes for an imminent BoE rate cut.
- A negative surprise in this morning’s Retail Sales could weigh on Sterling, but any dovish reaction is likely to be limited given the prevailing focus on services inflation and wage pressures.
Bias into NY: Mildly bearish EUR/GBP, targeting a retest of the 0.8480 level, driven by resilient UK services inflation and a cautiously hawkish BoE stance relative to the ECB’s mild easing bias.