On Monday, there was a lack of clear direction for the Euro (EUR) against the British Pound (GBP). Despite an initial attempt to bounce back from last week’s losses, the EUR/GBP pair struggled to gain momentum. The Euro received somewhat of a boost after US President Donald Trump announced a delay in tariffs on European imports until July 9. This development helped the pair avoid further downward pressure. However, the 0.8400 resistance level continues to hold, as the British Pound remains resilient due to solid UK fundamentals and stable inflation expectations. Trump had initially proposed a 50% tariff on all goods from the European Union (EU), but after a conversation with European Commission President Ursula von der Leyen, the deadline was extended. Von der Leyen assured that Europe is ready to engage in negotiations quickly and decisively. Furthermore, European Central Bank (ECB) President Christine Lagarde’s comments also contributed to stabilizing the Euro. Lagarde emphasized the importance of increasing the Euro’s global standing in the face of uncertain economic and political conditions. She stressed the need for stronger institutions, deeper capital markets, and a commitment to economic security. Despite these positive developments, EUR/GBP was stuck below the 0.8400 mark. On Tuesday, the Eurozone is set to release several crucial sentiment indicators for May, including Business Climate, Consumer Confidence, Economic Sentiment, Industrial Confidence, and Services Sentiment. These figures will offer valuable insights into the perceptions of businesses and consumers regarding the region’s economic conditions. For EUR/GBP, these reports will be crucial in determining whether the Euro can maintain its recent strength against the British Pound. If the data comes in better than expected, it could bolster confidence in the Eurozone’s resilience, potentially delaying any further ECB rate cuts and supporting the Euro. However, weaker sentiment figures could weigh on the Euro, especially if ECB policymakers like Klaas Knot and Joachim Nagel take a more dovish stance in their remarks later in the day. In such a scenario, bearish sentiment may return for EUR/GBP, especially if UK fundamentals continue to outperform the Eurozone’s.