EUR/GBP trades little changed on Tuesday, remaining under pressure after buyers failed to break above 0.8660, a former multi-month support level that is now acting as resistance. At the time of writing, the cross trades around 0.8578. The subdued price action comes as traders assess Middle East risks and their potential impact on the monetary policy outlook in the Eurozone and the United Kingdom. Crude Oil prices remain elevated as the United States (US) and Iran struggle to make progress toward an agreement that could end the war and restore shipping through the Strait of Hormuz. Higher energy costs keep inflation risks tilted to the upside, forcing policymakers to maintain restrictive interest rates for longer.
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