EUR/GBP struggles around the 0.8950 region, focus on German CPI

• EUR/GBP still navigates below the 0.9000 mark.
• Uncertainty prevails around the UK political scenario.
• German flash CPI figures coming up next.

Today’s bid tone surrounding the Sterling has brought in some weakness to EUR/GBP forcing to to recede to the mid-0.8900s, where it is now looking to stabilize.

EUR/GBP looks to UK, data

After five consecutive daily gains, the European cross is now showing some signs of exhaustion, at the time when a test/surpass of the psychological 0.9000 the figure still remains elusive.

On the Brexit front, the British Pound managed to retake some shine today after candidate (and very likely to be the next PM) Boris Johnson said the odds for a no-deal scenario are a ‘million-to-one against’. It is worth recalling that B.Johnson just hours ago said on a radio interview that the UK will leave the EU on October 31 ‘come what may, do or die’.

On the docket and this side of the Channel, all the looks will be upon the German advanced inflation figures tracked by the CPI for the current month, while earlier in the day the Consumer Confidence in the euro area dropped further to -7.2 in June (from -6.5).

What to look for around GBP

Rising uncertainty in the UK political scenario is expected to keep the cautious stance intact around the British Pound, while bouts of USD-selling remains the sole driver behind sporadic bullish attempts in Cable. In the UK economy, mixed-to-poor results from fundamentals continue to add to the sour prospects for the economy in the months to come. On another direction, the overall tone from the BoE appears to have shifted towards a more neutral (dovish?) gear, while uncertainty around Brexit is seen as the main obstacle in determining the next move on rates.

EUR/GBP key levels

The cross is receding 0.08% at 0.8949 and faces the next down barrier at 0.8872 (low Jun.20) followed by 0.8826 (low Jun.5) and then 0.8779 (200-day SMA). On the flip side, a break above 0.8974 (monthly high Jun.17) would expose 0.9062 (low Jan.11) and finally 0.9092 (2019 high Jan.3).