EUR/GBP slips near 0.8300 ahead of UK inflation numbers and EU leaders summit

• EUR/GBP has plunged near 0.8300 on expectations of higher UK inflation numbers.
• The BOE may prefer an interest rate hike fourth time to achieve price stability.
• EU members are mixed on banning the Russian oil imports.

The EUR/GBP pair has witnessed a steep fall after slipping below 0.8350, which acted as major support earlier and has been dragged near 0.8300. Investors have dumped the shared currency against the pound on expectations of a higher UK Consumer Price Index (CPI) figure on Wednesday.

As per the market estimates a preliminary estimate is 5.9% for yearly CPI, much higher than the prior print of 5.5%. It indicates that the Bank of England (BOE) will call for an interest rate hike to achieve price stability. Therefore, odds are claiming for an interest rate hike fourth time in a row. This is going to strengthen the pound against the shared currency further.

Apart from that, the UK Office for National Statistics will also report the Retail Price Index on Wednesday, which is likely to be recorded at 8.2% on yearly basis against the previous print of 7.8%.

On the Euro front, investors are eyeing the European Union (EU) leaders summit, which is due on Thursday. The summit will discuss the embargo on Russian oil. A mixed response from the Euro members has been observed by the time. Germany is notwithstanding on banning the Russian oil considering high dependency on oil and energy imports from Russia along with galloping oil prices. Should the embargo on Russian oil take place, the eurozone will face more carnage going forward.