EUR/GBP gains ground below the mid-0.8500s following UK labor market, German CPI data
- EUR/GBP attracts some buyers near 0.8540 after the UK labor market and German CPI data.
- The UK ILO Unemployment Rate rose to 3.9% in three months to February vs. 3.8% prior, worse than expected.
- The German Harmonized Index of Consumer Prices (HICP) came in at 0.6% MoM and 2.7% YoY in February, as expected.
- Traders will shift their attention to the UK monthly Gross Domestic Product (GDP), due on Wednesday.
The EUR/GBP cross holds positive ground below the mid-0.8500s during the early European trading hours on Tuesday. The cross edges higher following the UK Labor market and German inflation data. The cross currently trades around 0.8540, gaining 0.16% on the day.
The latest data released from the UK Office for National Statistics on Tuesday showed that the ILO Unemployment Rate came in worse than expected, rising to 3.9% in the three months to February from 3.8% in the previous reading. Meanwhile, the number of people claiming jobless benefits rose by 16.8K in February from a gain of 3.1K in January. The UK Employment Change came in at -21K in January, versus a 72K increase in December.
On the Euro front, the German Consumer Price Index (CPI) report for February was in line with the market estimation. The CPI figure remains steady at 0.4% MoM and 2.5% YoY in February. The Harmonized Index of Consumer Prices (HICP) arrived at 0.6% MoM and 2.7% YoY in February, as expected.
Looking ahead, the UK monthly Gross Domestic Product (GDP), Industrial Production, Manufacturing Production, and Trade Balance for January will be released on Wednesday. Traders will take cues from the data and find trading opportunities around the EUR/GBP cross.
Author
Lallalit Srijandorn
FXStreet
Lallalit Srijandorn is a Parisian at heart. She has lived in France since 2019 and now becomes a digital entrepreneur based in Paris and Bangkok.
