EUR/GBP holds above 0.8400 as traders wait for UK jobs data
The EUR/GBP pair stayed above the 0.8400 level on Tuesday morning. Traders are now waiting for fresh UK jobs data to get a better idea of where the market is heading.
The British Pound is facing pressure after recent data showed the UK unemployment rate stayed at 4.4% in the last three months. At the same time, the number of people claiming jobless benefits went up by 44,200 in February. This rise was much higher than the expected increase of around 7,900 and also more than the previous 2,800.
These signs of weakness in the UK job market have made many investors think the Bank of England might not raise interest rates soon. Most expect the central bank to keep the rate steady at 4.5%, which is not giving much support to the Pound.
Meanwhile, the Euro is gaining some strength as Germany approved a large spending plan to help its economy. This has given the Euro a slight push, helping EUR/GBP remain strong.
Investors are now focused on upcoming UK job numbers and the Bank of England’s next policy decision. These will likely decide the next big move in the EUR/GBP pair.
Impact: If UK jobs data stays weak, the Pound might remain under pressure. EUR/GBP could stay above 0.8400 or even move higher depending on upcoming news.