EUR/GBP continues its upward trend for the third consecutive day, hovering around 0.8500 during Monday’s Asian session. The Euro advances as investors’ sentiment improves amidst Marine Le Pen’s National Rally confirming its status as France’s leading political force in the initial round of legislative elections, marking the highest turnout in three decades. While Le Pen’s party secured a clear but not definitive victory, uncertainty prevails ahead of the second round of voting on July 7, as reported by France 24.Meanwhile, European Central Bank (ECB) Governing Council member Olli Rehn suggested last week that the central bank might cut interest rates twice more this year. Recent data showed that France’s annual inflation rate matched expectations, slowing to 2.5%, while Spain’s rate fell to 3.5%, slightly above forecasts. Conversely, Italy’s inflation accelerated as anticipated to 0.9%. Moreover, Germany’s Consumer Price Index (CPI) data is scheduled for release on Monday.In the United Kingdom (UK), the upcoming general election on Thursday may induce volatility in the EUR/GBP cross. According to the latest exit polls, the Opposition Labour Party is anticipated to prevail over the Conservative Party led by UK Prime Minister Rishi Sunak.UK GDP (QoQ) figures have been upwardly revised, showing a 0.7% expansion in the first quarter, up from the previous quarter’s 0.6% growth. This marks the strongest growth in over two years and has caused the UK’s 10-year Gilt yield to rise to 4.17%, tempering expectations of rate cuts.More By This Author:USD/JPY Remains Below 160.50 After Retreating From 38-Year Highs WTI Moves Below $80.00 Due To A Surprise Build In US Crude Stockpiles USD/CHF Moves Above 0.8950 Due To Expectations Of Delaying Fed Rate Cuts
