ExchangeRates.org.uk – Euro () exchange rate traded mostly flat on Tuesday following the publication of Germany’s latest Zew economic sentiment index and the UK’s latest unemployment rate.Pound Sterling (GBP) traded in a wide range against the majority of its peers on Tuesday, dipping against several of its counterparts but remained flat elsewhere, following the publication of the UK’s latest jobs data.
Unemployment in the UK reported an increase in November and edged up from 4.3% to 4.4%, rather than remaining the same as forecast, undermining GBP exchange rates.
However, offering Sterling some modest support on Tuesday was the publication of the latest average earnings index (excluding bonuses).
This data revealed that UK wage growth rose more than expected in November, with the index ticking up from 5.2% to 5.6%, slightly higher than a more modest 5.5% forecast.
Euro (EUR) Ticks Lower amid Declining Economic Sentiment
The Euro (EUR) struggled to catch bids on Tuesday and dipped against the majority of its peers following the publication of Germany’s latest Zew economic sentiment index.
January’s data revealed a decrease in economic morale in the Bloc’s largest economy, with the index falling from 15.7 to 10.3 rather than a more modest estimate of 15.3.
This served to further ramp up European Central Bank (ECB) interest rate cut bets, ultimately denting the common currency
during Tuesday’s European session.
GBP/EUR Forecast: ECB Speech in the Spotlight?
Looking ahead, the primary driver of movement for the Pound Euro exchange rate looking ahead to Wednesday will likely be a speech from ECB President Christine Lagarde.
As speculation mounts over an upcoming ECB interest rate cut, any dovish language from the central bank’s President could see the single currency continue to be undermined as we move into mid-week trade.
Turning to the Pound, UK data will be absent from Wednesday’s data-calendar, and as such, we will likely see GBP exchange rates struggle to find a clear direction.
This content was originally published on ExchangeRates.org.uk
