EUR/GBP refreshes to week-high near 0.8500 ahead of Eurozone inflation

• EUR/GBP has printed a fresh two-week high above 0.8500 ahead of Eurozone HICP.
• UK markets are closed on account of the Summer Bank Holiday.
• Nord Stream 1 pipeline to Germany for gas supply has gone under unscheduled maintenance.

The EUR/GBP pair is advancing firmly and has climbed above the psychological resistance of 0.8500 in the early European session. The asset has displayed a bullish open-drive session as the shared currency bulls are scaling higher right from the first tick in the morning session and have refreshed its two-week high at 0.8510. The cross has picked significant bids as investors are awaiting the release of the Eurozone Harmonized Index of Consumer Prices (HICP) data, which is due on Wednesday.

As per the market consensus, the Eurozone HICP is expected to land higher at 9% than the prior release of 8.9%. So, the third contender is ready to enter into the domain of a 9% inflation rate after the US and the UK. Soaring energy bills in the Eurozone have dented the market sentiment. Also, the electricity and energy prices are set for a fresh rally and may impact households further.

Investors should be aware of the fact that energy supplies to Germany from Nord Stream 1 pipeline by Russia under the Baltic Sea will remain shut for three days due to unscheduled maintenance. This may accelerate the energy crisis further as demand will improve further ahead of winter season.

Meanwhile, UK markets are closed on account of the Summer Bank Holiday. Therefore, investors will focus on cues from the eurozone. On a broader note, investors will focus on impetus from UK elections as will be a heavy volatile time for the pound bulls. Instability in the UK markets amid political turmoil will find some cushion ahead.