Sterling awaits Tuesday’s UK jobs report, with wage growth figures likely to influence BoE policy expectations and the cross’s direction.
EUR/GBP remains rangebound around the mid-0.8500s, showing little momentum as traders await UK labor market data. The cross is nearly unchanged on the day, reflecting cautious positioning ahead of key releases that could sway Bank of England policy bets.
Tuesday’s UK jobs report includes Average Earnings, a critical gauge for domestic inflation, alongside Claimant Count, Employment Change, and the ILO Unemployment Rate. Consensus expects a slight dip in unemployment, while wage growth will be closely scrutinized for signs of persistence. Strong figures could bolster GBP, while a soft print may reinforce ECB hawkishness and support EUR.
Markets are pricing in another ECB rate hike in September, driven by stubborn energy-linked inflation. Meanwhile, geopolitical tensions in the Strait of Hormuz add a layer of uncertainty but have yet to materially impact the cross.