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EUR/GBP edges lower near 0.8540 amid Middle East shipping tensions
With no Eurozone or UK data until early Wednesday, sentiment is driving the cross, while German HICP and UK GDP are set to be key catalysts.
EUR/GBP is trading near the lower end of its weekly range around 0.8540, holding a mildly bearish near-term bias, according to FXStreet.
The move is being attributed largely to sentiment tied to ongoing Middle East shipping tensions, including Iran’s blockade of the Strait of Hormuz and a US counterblockade of Iranian ports, plus a report that US forces attacked a Panama-flagged ship attempting to pass through the Strait.
FXStreet also points to upcoming data as potential direction setters, with Germany’s Harmonized Index of Consumer Prices (HICP) due Wednesday and the UK’s preliminary GDP release expected on Thursday.
On the technical side, EUR/GBP is around 0.8545, capped below the 100-period and 20-period SMAs, while RSI near 37 signals lingering downside pressure despite proximity to oversold levels.