EUR/GBP Holds Ground After UK Jobs Report, ZEW Sentiment Surveys Eyed
EUR/GBP Rebounds After UK Jobs Data Release
The EUR/GBP currency pair saw a slight increase, trading around 0.8420, following the release of mixed employment data from the United Kingdom. This marks the end of a six-day losing streak for the cross. Investors are now awaiting the ZEW Economic Sentiment surveys for May, which are expected to shed light on institutional investor confidence in Germany and the Eurozone.
UK Employment Figures Show Mixed Signals
The ILO Unemployment Rate, a key indicator of the UK labor market, ticked up to 4.5% in the three months to March, slightly exceeding the previous quarter’s 4.4%. This figure aligns with market expectations. On the other hand, the Claimant Count Change rose by 5,200 in April, surpassing the anticipated increase of 22,300. This suggests a stronger labor market than initially predicted.
Employment Change, however, showed a modest gain of 112,000 in March, down from February’s 206,000. While these figures offer a mixed picture of the UK economy, they haven’t significantly impacted the EUR/GBP exchange rate.
Focus Shifts to ZEW Economic Sentiment Surveys
Later today, traders will be closely watching the ZEW Economic Sentiment surveys for May from both Germany and the Eurozone. These surveys provide valuable insights into the confidence levels of institutional investors, which can influence currency movements.
Eurozone Policy Review Remains Steady
Meanwhile, Reuters reported that several European Central Bank officials indicated that the ongoing policy review is expected to reaffirm existing strategies, including quantitative easing (QE). Despite some internal criticism, policymakers emphasized the ECB’s commitment to maintaining its “forceful action” language during periods of low rates and inflation.
Mixed Wage Growth Data
Wage growth data from the Eurozone also presented a mixed picture. Average Earnings, excluding bonuses, rose by 5.6% year-over-year in the three months to March, falling slightly short of the previous 5.9% and the anticipated 5.7%. However, wages, including bonuses, increased by 5.5%, exceeding forecasts of 5.2% but remaining below the revised 5.7% recorded previously.
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