Pound to Euro May Rebound on Inflation Bounce

The Pound to Euro exchange rate saw modest selling pressure on Tuesday after the UK's latest jobs data was published.

The data showed that the domestic jobless rate remained flat at 4.9% in June, missing expectations for a drop to 4.8%, and hiring activity slowed markedly.

This led to Sterling softening as investors trimmed expectations of a Bank of England interest rate hike in 2026.

However, the Pound may recover if UK inflation accelerates in July, potentially reviving BoE rate hike speculation and lifting Sterling.