• EUR/GBP gains ground as German Trade Balance increases to €24.9 billion in May.
• The Euro may struggle due to political uncertainty in France.
• The Pound Sterling could limit its downside due to positive sentiment following the Labour Party's landslide victory.

EUR/GBP edges higher to near 0.8460 during the early European session on Monday. This upside could be attributed to the higher-than-expected German Trade Balance. The trade surplus increased to €24.9 billion in May, surpassing the market expectations of €20.3 billion and the previous reading of €22.2 billion (revised from €22.1 billion).

However, political uncertainty in France following the second round of parliamentary elections on Sunday exerted some selling pressure on the Euro (EUR), which might limit the upside of the EUR/GBP cross. According to The Economist, exit polls indicated that the left-wing New Popular Front (NFP), led by Jean-Luc Mélenchon, is on track to win the most seats, having secured at least 174 seats