EUR/GBP edges up, softer UK employment data not material for sterling

June 11, 2024 9:46 am — The pair ticked up 0.2% on Tuesday. This movement came after reports indicated a larger-than-expected decrease in UK employment alongside earnings figures that were marginally softer than anticipated.

“The BoE has cautioned that this may be indirectly affected by the data issues affecting the labour force survey, and seems to have been deprioritised it when assessing when to cut rates”, James Smith, ING’s UK economist said.

Given the Bank Of England’s lack of opportunities to communicate with the market because of the 4 July election, market participants will have to wait for the BoE rate meeting on June 20 for more substantial information regarding the central bank’s outlook and potential policy changes.

The EUR/GBP pair is expected to trade within a range of 0.8450 to 0.8500 in the near term. Analysts are focusing on the re-pricing of the BoE rate cycle as a key factor that may influence the pair’s movement this summer and look for a move back to the 0.86/87 area over the next couple of months.

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