EUR/GBP trades with mild losses below 0.8500 ahead of ECB's Lagarde speech

• EUR/GBP weakens to 0.8470 in Wednesday's early European session. 
• The uncertainty surrounding UK general elections and the BoE's rate cuts might cap the upside of GBP. 
• Investors await the Eurozone PMI data for June and the ECB's Lagarde speech on Wednesday. 

The EUR/GBP cross trades on a softer note around 0.8470 during the early European session on Wednesday. The softer inflation in the Eurozone in June has spurred the hopes that the European Central Bank (ECB) will cut interest rates again this year, which exerts some selling pressure on the Euro (EUR). 

The upcoming UK general elections might limit GBP movement ahead of the vote on Thursday before the results potentially trigger some volatility on Friday. Apart from this, the rising bets that the Bank of England (BoE) will cut the interest rate this year are likely to weigh on the British Pound (GBP). 

The Eurozone flash Harmonized Index of Consumer Prices (HICP) came in at 2.5% YoY in June, in line with consensus expectations, Eurostat reported on Tuesday. Meanwhile, the core HICP increased 2.9% YoY in the same period, above the market consensus of 2.8%. ECB Chief Economist Philip Lane said that the incoming June data "seem to be in line with the ECB assessment" while also continuing to signal the possibility of further rate cuts.

Later on Wednesday, investors will keep an eye on the Purchasing Managers Index (PMI) data from Germany, France, and the Eurozone. Also, the speeches from ECB's Luis de Guindos, Piero Cipollone, Philip Lane, and Christine Lagarde will be the highlights on Wednesday.