EUR/GBP clocks 5-day high, eyes Puigdemont's decision

EUR/GBP clocked a 5-day high of 0.8958 in Europe, despite reports that Catalan leader Puigdemont is set to bid for independence today.

The official decision is due at 08:00 GMT. According to La Vanguardia, Puigdemont is all set to tell Spanish PM Rajoy that he is ready for independence. In such a case, the political crisis could worsen as PMI Rajoy has made it clear several times that he would trigger Article 155 of Spain's constitution - a measure that would allow it to start imposing direct rule over semi-autonomous Catalonia - if Puigdemont bids for independence.

So far, the common currency has not shown any sign of weakness. But, things may change if the political tensions escalate.

Meanwhile, the UK retail sales data due at 08:30 GMT could influence the demand for the British Pound.

EUR/GBP Technical Levels

The cross was last seen trading around 0.8950 levels. The immediate resistance is lined up at 0.8993, which, if breached, would expose 0.9033 (previous week's high) and 0.9049 (late Oct 2016 high). On the downside, breach of support at 0.8929 (100-DMA) would expose support at 0.8897 (previous day's low) and 0.8891 (July 27 low).