Euro Edges Higher as Pound Tumbles on Mixed UK Jobs Data
The Euro gained some ground on Tuesday as the British Pound fell following mixed UK employment data. The EUR/GBP exchange rate rebounded to around 0.8560, but remains vulnerable after a 0.5% decline over the previous two days.
The UK's unemployment rate remained steady at 4.9% in the three months to July, contrary to expectations of an uptick to 5%. However, jobless claimants increased by 27.8K, exceeding the predicted 8.3K increase and following a 11.8K drop in the previous month.
The Bank of England (BoE) is expected to leave interest rates unchanged this week, with Governor Bailey's comments last week hinting at a cautious approach. Nevertheless, investors are likely to pay close attention to the BoE's monetary policy decision on Thursday and any potential dissent among committee members.