- EUR/GBP is moving higher on the back of lower-than-expected UK job application count data.
- Jobless claims have fallen to -19,700 from the previous figure of 65,500.
- This week, investors’ attention will remain focused on the monetary policy of the Bank of England.
The crossing EUR/GBP is showing wild movements and has finally moved up as the UK Office for National Statistics has reported mixed UK employment data. A significant slippage has been observed in the change in the applicant count, as the economic data has slipped to -19,700 against expectations of 49,400 and the previous figure of 65,500. The unemployment rate has risen to 3.8%against the consensus of 3.6%.
The cross was trending lower after several failed attempts to break through the psychological resistance at 0.8600. More generally, the cross experienced strong oscillations after the European Central Bank (ECB) kept its interest rates unchanged at -0.1%. Market participants did not applaud ECB President Christine Lagarde’s neutral interest rate policy as inflationary pressures are building in the eurozone and need to be contained sooner rather than later.
This week, the Bank of England’s interest rate policy will be the big event to watch. According to market consensus, a 25 basis point rate hike is expected to be announced. The Rising price pressures force 50 basis point rate hike On the BoE side, however, lower growth forecasts and resurgent recession fears limit the BoE to going beyond a quarter-point rate hike.
EUR/GBP technical levels
Source: Fx Street
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