EUR/GBP Weak Near 0.8650 After Weak UK Jobs Report
The EUR/GBP pair is trading close to 0.8650 in early European hours on Thursday. The British Pound is under pressure after the UK released disappointing employment data.
The UK unemployment rate rose to 4.7% in the three months to May, up from the previous 4.5%. Also, the number of people claiming unemployment benefits in June jumped by 25,900—much higher than the expected 17,900. This data is causing fresh GBP weakness and raising concerns about the UK economy. Traders are now closely watching the Bank of England rate cut expectations.
On the Euro side, pressure is building as well. Hopes for a possible US–EU trade deal are growing, which might reduce tariff risks. However, if that deal fails and new tariffs are introduced, it could hurt the Eurozone economy and push the European Central Bank (ECB) to consider easing. This could affect the overall Euro outlook.
At the moment, both the Pound to Euro rate and Euro are being watched closely. Investors are waiting for fresh Eurozone inflation data, which could drive the next move in EUR/GBP price movement.
Impact:
The EUR/GBP forecast suggests the pair might rise if UK job data continues to weaken or if the BoE shifts towards cuts. A drop is possible if Eurozone data disappoints or if ECB turns dovish.