EUR/GBP remains capped below 0.8600 following UK employment data


  • EUR/GBP weakens to 0.8590 following the UK employment data on Tuesday. 
  • The UK Unemployment Rate climbed to 4.3% in the three months to March from 4.2%, as expected. 
  • The markets are largely pricing in the ECB rate cut as early as next month, with two possible further cuts this year.

The EUR/GBP cross trades on a softer note near 0.8590 during the early European trading hours on Tuesday. The cross faces rejection after retracing from its nearly 0.8600 psychological level due to mixed UK employment data. The attention will shift to the ZEW Survey from the Eurozone and Germany, along with the ECB's Schnabel speech later in the day. 

The latest data from the UK Office for National Statistics on Tuesday showed that the ILO Unemployment Rate rose to 4.3% in the three months to March from 4.2% in the previous reading, in line with the market consensus of 4.3%. Meanwhile, the number of people claiming jobless benefits rose by 8.9K in April from a decline of 2.4K in March. The UK Employment Change came in at -177K in the three months to March, versus a -156K decrease in the previous reading. However, these reports had little to no market reaction to the Pound Sterling (GBP).

On the Euro front, the European Central Bank (ECB) kept rates on hold at a record high at its meeting last month, as widely expected. The ECB policymakers hinted that a June rate cut was much in consideration as inflation measures continued to decline and wage growth eased. Investors will take more cues from the advanced Eurozone Gross Domestic Product (GDP) for Q1, due on Wednesday about the economic outlook. In case of a weaker-than-expected outcome, this might weigh on the Euro (EUR) and drag the EUR/GBP cross lower. 

EUR/GBP

Overview
Today last price 0.859
Today Daily Change -0.0001
Today Daily Change % -0.01
Today daily open 0.8591
 
Trends
Daily SMA20 0.8578
Daily SMA50 0.8564
Daily SMA100 0.8569
Daily SMA200 0.8605
 
Levels
Previous Daily High 0.8609
Previous Daily Low 0.859
Previous Weekly High 0.8621
Previous Weekly Low 0.8557
Previous Monthly High 0.8645
Previous Monthly Low 0.8521
Daily Fibonacci 38.2% 0.8597
Daily Fibonacci 61.8% 0.8602
Daily Pivot Point S1 0.8585
Daily Pivot Point S2 0.8579
Daily Pivot Point S3 0.8567
Daily Pivot Point R1 0.8603
Daily Pivot Point R2 0.8615
Daily Pivot Point R3 0.8621

 

 

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