- EUR/GBP holds losses after the release of UK employment data on Thursday.
- UK Claimant Count Change, claiming jobless benefits, rose to 32.3K in June, surpassing market expectations of 23.4K.
- ECB could maintain its main refinancing rate at 4.25% at the July meeting scheduled later in the day.
EUR/GBP holds mild losses following mixed employment figures from the United Kingdom (UK) released on Thursday. The EUR/GBP cross trades around 0.8410 during the Asian session on Thursday.
The UK Claimant Count Change, which measures the number of people claiming jobless benefits, rose to 32.3K in June, surpassing market expectations of 23.4K. The previous month's figure was revised from 50.4K to 51.9K.
The ILO Unemployment Rate held steady at 4.4% in the three months to May, matching the previous period's rate. The market consensus was also for a 4.4% reading.
Meanwhile, the Office for National Statistics reported an Employment Change of 19.0K for the three months to May, indicating an increase in the number of employed persons. The previous reading had shown a decrease of 140K.
On Wednesday, the final UK Consumer Price Index (CPI) inflation figures met expectations, but a larger-than-anticipated decline in UK Producer Price Index (PPI) inflation briefly pushed down the British Pound.
Traders shift their focus on the European Central Bank's (ECB) monetary policy meeting scheduled for later on Thursday. The ECB is expected to maintain its main refinancing rate at 4.25% at July’s meeting scheduled on Thursday.
In June, the central bank cut interest rates for the first time since 2019, following nine months of unchanged rates. Analysts foresee two additional rate cuts later this year, potentially in September and December.
ECB President Christine Lagarde is unlikely to outline a specific path for rate cuts. Instead, Lagarde is expected to highlight the need for more data to ensure confidence in the disinflation process before considering further policy easing.
Economic Indicator
ECB Main Refinancing Operations Rate
One of the three key interest rates set by the European Central Bank (ECB), the main refinancing operations rate is the interest rate the ECB charges to banks for one-week long loans. It is announced by the European Central Bank at its eight scheduled annual meetings. If the ECB expects inflation to rise, it will increase its interest rates to bring it back down to its 2% target. This tends to be bullish for the Euro (EUR), since it attracts more foreign capital inflows. Likewise, if the ECB sees inflation falling it may cut the main refinancing operations rate to encourage banks to borrow and lend more, in the hope of driving economic growth. This tends to weaken the Euro as it reduces its attractiveness as a place for investors to park capital.
Read more.Next release: Thu Jul 18, 2024 12:15
Frequency: Irregular
Consensus: 4.25%
Previous: 4.25%
Source: European Central Bank
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 accelerates losses to 1.0930 on stronger Dollar
The US Dollar's recovery regains extra impulse sending the US Dollar Index to fresh highs and relegating EUR/USD to navigate the area of daily troughs around 1.0930 in the latter part of Friday's session.
GBP/USD plummets to four-week lows near 1.2850
The US Dollar's rebound keep gathering steam and now sends GBP/USD to the area of multi-week lows in the 1.2850 region amid the broad-based pullback in the risk-associated universe.
Gold trades on the back foot, flirts with $3,000
Gold prices are accelerating their daily decline, steadily approaching the critical $3,000 per troy ounce mark as the Greenback's rebound gains extra momentum and US yields tighten their retracement.
Can Maker break $1,450 hurdle as whales launch buying spree?
Maker holds steadily above $1,250 support as a whale scoops $1.21 million worth of MKR. Addresses with a 100k to 1 million MKR balance now account for 24.27% of Maker’s total supply. Maker battles a bear flag pattern as bulls gather for an epic weekend move.
Strategic implications of “Liberation Day”
Liberation Day in the United States came with extremely protectionist and inward-looking tariff policy aimed at just about all U.S. trading partners. In this report, we outline some of the more strategic implications of Liberation Day and developments we will be paying close attention to going forward.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.