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EUR/GBP rises modestly as UK jobs data weighs on the pound
UK unemployment held at 4.9% and employment change softened to 83K in June, pushing traders to sell GBP after the data.
The EUR/GBP cross gained modestly in early European trading, holding near 0.8550 as the British pound came under pressure following UK labor-market figures released by the Office for National Statistics, according to FXStreet.
The UK unemployment rate steadied at 4.9% in the three months to June, edging above the 4.8% market consensus. Jobless benefits also fell, with claims down by 11K in July versus a revised decrease of 6.4K prior, and employment change arriving at 83K in June compared with 147K in May.
Looking ahead, traders were positioned for additional scheduled catalysts, including the ZEW Survey from Germany and the eurozone later Tuesday, with UK inflation data due on Wednesday. On the interest-rate backdrop, FXStreet cited Reuters noting one 25 basis points hike priced by the end of 2026 in markets on Monday.
On the euro side, Scotiabank analysts said a firming trend in the euro reflects economic resilience in the eurozone despite energy headwinds, and they expected the European Central Bank to raise rates by 25 bps at its September meeting. The article also said technical levels keep EUR/GBP capped below the 100-day simple moving average, with nearby resistance around 0.8555 and 0.8582 and support around 0.8530.