Euro Slumps to Two-Week Low Against Pound Amid UK Labor Market Report Jitters
The Euro has slid against the Pound to a two-week low of 0.8554, trading in the 0.8560 region. This decline is largely due to the UK's upcoming labor market report, which is set to reveal softer numbers. Average earnings, including bonuses, are expected to ease to 3.9% from 4.1%, while the ILO Unemployment Rate is forecast to tick up to 5% from 4.9%. The Euro's main test of the week comes in the form of Germany's ZEW economic sentiment survey, which will be released on Tuesday.
According to ECB President Christine Lagarde, Europe risks being cut off from artificial intelligence if it does not take steps to address its dependence on imported technology. She made this warning during a speech in Vienna, where she also noted that the energy shock looks 'longer-lasting' with Euro area inflation at 3.3%, well above the 2% target.
The near-term catalyst for the UK labor market report is expected to soften, which may continue to put downward pressure on the Euro. On a technical level, the EUR/GBP pair holds beneath both the 20-period Simple Moving Average (SMA) at 0.8580 and the 100-period SMA at 0.8575.