EUR/GBP holds positive ground above 0.8700 ahead of the UK CPI data

• EUR/GBP trades in positive territory around 0.8700 ahead of the UK key data.
• The Eurozone Gross Domestic Product (GDP) contracted quarter-on-quarter in the third quarter (Q3).
• The UK monthly and annual CPI figures are expected to rise 0.1% and 4.8%, respectively.

The EUR/GBP cross snaps the two-day losing streak during the early European session on Wednesday. Investors await the UK inflation data, which are expected to show an easing in inflationary pressure. The cross currently trades around 0.8704, unchanged on the day.

The Eurozone Gross Domestic Product (GDP) contracted quarter-on-quarter in the third quarter (Q3). The growth figures affirm estimates of a technical recession if the fourth quarter is similarly dismal, although employment grew. ECB Vice President Luis de Guindos said last week that Eurozone economic growth will remain weak in the near term. However, it will be in a better position to reassess the inflation outlook and required action in the December meeting.

On the British Pound front, the UK ILO Unemployment Rate remains unchanged at 4.2% in the quarter to September, in line with the market consensus of 4.2%. Meanwhile, the number of people claiming jobless benefits climbed by 17.8K in September versus a 20.4K jump prior. The Bank of England (BoE) Chief Economist Huw Pill said on Tuesday that the central bank doesn't necessarily need to hike another rate but is prepared to if needed.

Market players await the UK Consumer Price Index (CPI) for October for fresh impetus. The monthly and annual headline inflation figures are expected to rise 0.1% and 4.8%, respectively. The Core CPI figure is estimated to grow by 5.8% from a 6.1% rise in the previous reading. On the Euro docket, the CPI data from Italy and France and the Eurozone Trade Balance will be released. Traders will take cues from the figures and find trading opportunities around the EUR/GBP cross.