EUR/GBP challenges daily lows around 0.8670 ahead of UK PMI

• EUR/GBP reverses Monday’s rise and retests daily lows.
• Eurozone economy's dismal performance in Q1 weighs on the cross.
• BOE consumer credit and PMI data keenly watched over.

The euro slid against its British counterpart and pushed EUR/GBP back to sub 0.8680 levels in the Asian session. The cross is struggling to move ahead of the 0.8720 level for the past few sessions, and thus, remains confined in a narrow range.

At the time of writing, EUR/GBP is trading at 0.8677, up 0.09% on the day.

EUR/GBP manages to stay afloat above the 0.8670 level, however, the euro continues to depreciate against the sterling. The UK economy consistently performs better in terms of economic development and in the management of vaccination programs way better than its counterpart. Investors keep their faith in the cable in the hope that the UK economy will race ahead in the coming quarters, which will keep a check on the pair gains.

The concerns surrounding the Brexit saga seems to be calming down except for the Northern Ireland issue, which continues to create a nuisance for the UK. Further, in a recent development, France also rejected UK’s post-Brexit provisional charges to the Fishing license. This keeps the sterling valuation overstretched helping the cross to avoid heavy selling pressure.

On the other hand, the euro is struggling with domestic chaos in relation to economic performance. On an annualized basis, the economy shrank by 1.8%, as per the Eurostat released on Friday while the delayed vaccination programmes keep the investors wary about the prospects of the economic recovery.

Investors now keenly watched over the Bank of England (BOE) Consumer Credit data along with Markit/ CIPS Manufacturing PMI in April to take some fresh trading opportunities.

EUR/GBP additional level