EUR/GBP steady around 0.8650 as traders eye key EU, UK data and Trump-Putin Talks

• EUR/GBP flat near 0.8650 in early North American trade.
• Market mood upbeat ahead of expected Trump-Putin meeting on Ukraine.
• Focus on upcoming EU and Germany ZEW Survey, French inflation, and EU GDP.
• UK GDP due Aug 14, with Retail Sales and jobs data scheduled earlier.

The EUR/GBP remains virtually unchanged as Monday's North American session kicks in, exchanging hands at around 0.8650 as traders brace for the release of crucial economic data in Europe and in the United States (US).

Geopolitical optimism lifts Euro while markets eye inflation, ZEW sentiment, and UK growth outlook

Market mood is upbeat as depicted by Wall Street. The release of inflation figures in the US keeps flows muted. At the same time, the Euro seems to be propelled by geopolitical developments as market players await the Trump - Putin meeting to discuss the Ukraine conflict.

On the data front, the European Union (EU) economic docket revealed that inflation in Italy came as expected at 1.7% YoY in July, unchanged from June, a justification for the European Central Bank (ECB) that the job on price stability is done. Besides this, EUR trades will eye the EU and Germany ZEW Survey for August, French inflation, and growth data for the bloc.

In the UK, traders continued to digest the recent hawkish cut by the Bank of England (BoE). The central bank updated its forecasts, painting a stagflationary scenario with prices continuing their uptrend, while growth remains stagnant as Gross Domestic Product (GDP) figures will be revealed on August 14.

Further data would be announced, with Retail Sales awaited on August 12 and employment data.

EUR/GBP Price Forecast: Technical outlook

In the short term, the EUR/GBP turned neutral to downward biased as sellers pushed the spot price below the 20-day Simple Moving Average (SMA) at 0.8677.  If the cross-pair ends daily below 0.8650, expect a test of the 50-day SMA below the 0.86 handle at 0.8598. Once those levels are cleared, the next stop will be the 100-day SMA at 0.8535.

Conversely, the first key resistance is the 0.8700 mark. If surpassed, this paves the way for challenging the YTD high at 0.8756.