EUR/GBP trades flat above 0.8300 as traders await the Eurozone inflation data
- EUR/GBP flat lines near 0.8330 in Tuesday’s early European session.
- ECB’s Lagarde signaled the October rate cut as inflation slows.
- Less dovish stance of the BoE might underpin the Pound Sterling in the near term.
The EUR/GBP cross trades on a flat note around 0.8330 on Tuesday during the early European session. Nonetheless, the rising speculation that the European Central Bank (ECB) will lower the interest rates in October might cap the upside for the Euro (EUR) against the Pound Sterling (GBP).
The ECB President Christine Lagarde on Monday hinted about additional rate cuts at its next policy meeting in October amid increasing signs that inflation is beaten and that the economy is struggling. Lagarde added that the central bank is more confident that inflation is going to settle at its target after a series of recent data releases, and will take that into account when it next sets policy. The rising bets on ECB rate reduction are likely to weigh on the shared currency for the time being.
Traders will closely watch the preliminary Eurozone inflation data for fresh impetus. The headline Harmonized Index of Consumer Prices (HICP) is expected to see an increase of 1.9% YoY in September, while the Core HICP is estimated to rise 2.9% YoY in the same period.
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