EUR/GBP clinches highs beyond 0.8500 ahead of UK CPI

The bid tone around the single currency stays on the rise so far this week, now helping EUR/GBP to move further north of the 0.8500 handle, or daily highs.

EUR/GBP attention to UK data

The European cross has managed to regain the 0.8500 limestone and above on Tuesday, propped up by the robust rebound in the single currency amidst a broad-based risk-on sentiment.

Adding to the 4-day upside, the Sterling remains somewhat steady while the upcoming release of UK’s inflation figures begs some caution amongst traders. Market consensus sees consumer prices to have ticked higher at an annualized 2.6% during last month, up from March’s 2.3% gain.

In the euro area, expectations for a firmer note from the German ZEW Survey could add to EUR’s buying interest, while prior surveys sees EMU’s advanced GDP to expand 0.5% inter-quarter in Q1.

EUR/GBP key levels

The cross is now gaining 0.18% at 0.8523 and a breakout of 0.8534 (high Apr.25) would expose 0.7548 (55-day sma) and then 0.8597 (200-day sma). On the downside, the next support emerges at 0.8454 (low May 15) followed by 0.8449 (20-day sma) and finally 0.8380 (low May 10).