EUR/GBP slips as NATO tensions and Trump tariffs weigh on Euro

• NATO warns Russia after Estonia airspace incursion, raises geopolitical risks that pressured the Euro.
• ECB Consumer Expectations Survey shows inflation forecast at 2.8% for one-year, five-year projection rises modestly.
• Traders eye UK budget details and Eurozone inflation data, alongside Trump's new tariffs targeting key European exports.

The Euro reversed its course against the British Pound amid a scarce economic docket in Europe and in the UK, though geopolitics could be the reasons that pushed the shared currency lower. The EUR/GBP trades at 0.8729, down 0.14%.

Shared currency drops 0.14% as geopolitics overshadow light UK, Eurozone dockets

Tensions in Europe seem to weigh on the Euro as NATO warned Russia that it is prepared to intercept Russian aircraft. According to Bloomberg, European officials privately told Russia they are ready to shoot down jets and view Russia's Estonia incursion as deliberate.

Data-wise, the European Central Bank released the Consumer Expectations Survey during the day, which showed that households forecast inflation in one year at 2.8% and for the 5-year projection rose from 2.1% to 2.2%.

On the UK front, a scarce docket left traders adrift to the weak Flash PMIs figures, revealed on Tuesday. Traders are also eyeing further details of the upcoming UK budget on November 26.

Market participants should also be keen on US President Donald Trump fresh tariffs, which could affect Europe. He imposed 100% duties on pharmaceuticals, 50% on all kitchen cabinets, bathroom vanities and associated products, 40% on upholstered furniture and a 25% levy on heavy trucks.

Next week, the docket in Europea will features Business Climate, Consumer Confidence, the Economic Sentiment Indicator, September inflation figures and a flurry of ECB speakers. Also, traders should be wary of Flash PMIs and German inflation and Retail Sales.

In the UK, Gross Domestic Product (GDP) figures would be eyed and speeches by members of the Bank of England.

EUR/GBP Price Forecast: Technical outlook

The EUR/GBP sits near weekly highs, though forming a "dark cloud cover" chart pattern, an indication that a retracement could be underway. The Relative Strength Index (RSI) despite being bullish, provided further confirmation as the index edges lower towards its neutral level.

That said, if EUR/GBP drops below 0.8700, the next support would be the 20-day SMA at 0.8686, ahead of the 50-day SMA At 0.8671. On the flip side, if buyers reclaim 0.8750, the next area of interest would be 0.8800.