Anna 
The EUR/GBP cross encountered resistance near the 100-day Simple Moving Average (SMA) on Tuesday, experiencing some supply pressure. Spot prices hovered around the 0.8575 region during the first half of the European session, halting a seven-day winning streak.
The relative outperformance of the British Pound (GBP) against the Euro (EUR) can be attributed to upbeat domestic data. Notably, Like-For-Like Retail Sales surged by a 3.2% year-on-year rate in March, surpassing the expected 1.8% rise and marking the strongest growth since August 2023. This positive data exerted downward pressure on the EUR/GBP cross.
Speculations surrounding a potential interest rate cut by the European Central Bank (ECB) due to a faster-than-anticipated fall in Eurozone inflation further weakened the shared currency, contributing to the downward trend of the pair. Conversely, rising expectations for at least four interest rate cuts by the Bank of England (BoE) this year, beginning in June, could limit the strength of the GBP and offer some support to the EUR/GBP cross.
Given the absence of significant economic data releases from the UK or the Eurozone on Tuesday, caution is advised before positioning for further movements. However, the appearance of BoE Governor Andrew Bailey could impact the Sterling Pound and provide momentum to the EUR/GBP cross. Nonetheless, market focus will primarily be on the monthly UK GDP print and factory data for February, scheduled for release on Friday.
