The Euro weakens against the British Pound, trading near 0.8555 as sterling benefits from higher carry appeal in a low-volatility environment.
The EUR/GBP pair fell for a third straight session, trading at 0.8555, down 0.3% from last week’s peak. The British Pound has shown resilience amid a moderate risk-off mood, supported by its higher carry profile in G10 currencies.
Recent data indicated mixed economic activity, with strong Eurozone and UK figures offset by disappointing UK retail sales in July. Analysts note sterling’s volatility-adjusted yield remains attractive, keeping the cross near 0.8550 levels for now.
Technical indicators suggest a bearish bias, with momentum softening and the RSI drifting toward the mid-40s. Key support lies at 0.8530, while the pair remains range-bound between 0.8530 and 0.8585.