- EUR/GBP edges higher in the early European session on Tuesday.
- The Euro gains investors confidence amid global risk sentiment.
- The sterling remains on the backfoot amid rising coronavirus cases and Brexit chaos.
After making a low of 0.8483 in the previous session, EUR/GBP manages to trade higher in the European session. The pair confides in a narrow trade band with underlying bullish sentiment ahead of crucial fundamental data.
At the time of writing, EUR/GBP is trading at 0.8516, up 0.18 % for the day.
The shared currency gathers momentum against the pound amid global risk sentiment, which went sour against the combination of factors. The disappointing Chinese data, the continuous spread of COVID-19’s Delta variant coupled with political upheaval in Afganisthan helped the Euro to gain as a less risky asset than the sterling.
On the other hand, the sterling was weighed down by the decision of the Bank of England (BOE) earlier in the month to keep interest rates and the asset-purchase programme on hold irrespective of the jump in inflation and signs of economic growth.
It is worth noting that S&P 500 Futures were trading down at 4,462 with 0.27% losses
As for now, traders are waiting for the slew of major fundamental data to take fresh trading impetus: the UK Claimant Count Change, Unemployment Rate, EU Gross Domestic Data (GDP), and Construction Output.