EUR/GBP flatlines just under 0.8550 as traders await Thursday’s UK GDP release

• EUR/GBP trades flat and rangebound just under 0.8550, as broader macro themes steal the FX market’s focus.
• UK GDP data out on Thursday could reinfuse some volatility. 

It’s been a tame session thus far for EUR/GBP, with today’s FX market focus largely on broader macro themes (like higher-than-expected US inflation) which have had little impact on the relative strength of the euro and pound sterling versus each other. Thus, trading conditions have been rangebound, with the pair going sideways within 0.8530-0.8560ish parameters. At present, the exchange rate is changing hands just to the south of the 0.8550 level and is flat on the day.

Things might pick up a little on Thursday with the release of the preliminary estimate of UK Q3 GDP at 0700GMT. Traders await the data to see if EUR/GBP’s recent pullback since rejecting its 200-day moving average in the 0.8580 region has any further legs. The 0.8560 level also seems to have formed a bit of a ceiling over the past two sessions and EUR/GBP might find current levels attractive to ride the pair back down to the weekly lows at the 21DMA around 0.8520.