EUR/GBP holds above 0.8800, unfazed by weak German sentiment data

The Euro maintains a bid tone against the Pound, holding gains above 0.8800 for now.

German ZeW Economic Sentiment Index deteriorated against expectations in November.

The Pound remains vulnerable following weak UK employment figures.

The Euro remains firm against a weaker British Pound on Tuesday, apparently unaffected by the dismal German ZEW survey figures released earlier in the day. The pair holds gains right above 0.8800 after bouncing from the 0.8765 area on Monday, with the two-year highs, near 0.8830, at a short distance.

The German ZEW Survey revealed that German investors’ sentiment about the economic perspectives deteriorated to a level of 38.5 in November, from 39.3 in the previous month, against expectations of an improvement to 40.0. The index measuring the current situation improved to -78.7 from -80.0, undershooting market expectations of a -77.5 reading.

UK jobs data hammered the Pound

The pair, however, had been boosted earlier on the day, amid broad-based Pound weakness following downbeat UK employment figures.

The UK ILO Unemployment Rate rose 5% in the three months to September, according to data released by National Statistics, reaching its highest reading since February 2021 in the Midst of the COVID crisis. The market consensus had anticipated a steady 4.9% reading.

Furthermore, average earnings eased to a 4.8% year-on-year pace in the mentioned period, slowing down from 5% in the previous month, and disappointing markets, which were expecting a 4.9% reading. These figures, coupled with the steady consumer inflation numbers released in October, pave the path for further BoE monetary easing in December.