- 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.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD stays below 1.0700 as focus shifts to Fed policy decisions
EUR/USD stays in its daily range below 1.0700 after the data from the US showed that private sector employment rose more than expected in April. The Federal Reserve will announce monetary policy decisions later in the day.
GBP/USD holds steady below 1.2500 ahead of Fed
GBP/USD is off the lows but stays flatlined below 1.2500 on Wednesday. The US Dollar holds its ground after upbeat ADP Employment Change data and doesn't allow the pair to stage a rebound ahead of the Fed's policy decisions.
Gold consolidates losses below $2,300, eyes on Fed policy decision
Gold price hovers below $2,300 as uncertainty ahead of the Fed’s policy announcements improves the appeal of the US Dollar and bond yields. The Fed is expected to hold the policy rate unchanged amid stubborn inflation.
A new stage of Bitcoin's decline
Bitcoin's closing price on Tuesday became the lowest since late February, confirming the downward trend and falling under March and April support and the psychologically important round level.
US Federal Reserve Decision Preview: Markets look for clues about interest rate cut timing
The Federal Reserve is widely anticipated to keep interest rates unchanged. Fed Chairman Powell’s remarks could provide important clues about the timing of the policy pivot.