EUR/GBP revisits the five-month high near 0.8740 ahead of Eurozone data

• EUR/GBP continues the winning streak despite downbeat German Retail Sales.
• Investors await Eurozone HICP and GDP data to gain economic insights into the Eurozone.
• BoE is expected to maintain interest rates at 5.25%; weakening the Pound Sterling.

EUR/GBP continues the winning streak for the third consecutive day, revisiting the five-month high around 0.8740 during the European session on Tuesday. The cross-pair receives upward support despite the weaker German Retail Sales (YoY), which declined by 4.3% in September compared to the previous drop of 2.3%.

Moreover, Germany’s preliminary Harmonized Index of Consumer Prices (MoM) for October released on Monday, declined by 0.2% against the expected rise of 0.1%, swinging from the 0.2% rise in September. While, the yearly index reduced to 3.0% from 4.3% previously, lower than the 3.6% expected.

Additionally, Germany's GDP for Q3 contracted, although the contraction was less severe than anticipated, still showing a negative reading of 0.1% against the market consensus of 0.3% decline.

The upcoming data from the Eurozone on Tuesday, including the Harmonized Index of Consumer Prices (HICP), Core HICP, and seasonally adjusted Gross Domestic Product (GDP), will be closely watched by investors. These indicators could provide crucial insights into the inflationary pressures and the economic performance of the Eurozone.

The anticipation that the Bank of England (BoE) will maintain interest rates at 5.25% in Thursday's decision is a significant factor in weakening the market sentiment toward the British Pound (GBP).

Investors will also likely monitor the BoE Monetary Policy Committee (MPC) report. The MPC reports provide insights into the internal dynamics and consensus among policymakers, offering cues on the central bank's stance on monetary policy.