UK unemployment held at 4.9% in June, above expectations, weakening the British Pound against the Euro.
The Euro rose against the British Pound, trading near 0.8550 in early European trading on Tuesday. The move followed UK employment data that fell short of market expectations, pressuring the GBP.
The UK unemployment rate remained steady at 4.9% for the three months to June, exceeding the consensus forecast of 4.8%. Jobless claims declined by 11K in July, reversing expectations of an 11.2K increase, while employment change dropped to 83K from 147K in May.
The British Pound dipped immediately after the release, as markets adjusted rate cut expectations. The Eurozone’s economic resilience and a potential 25 basis points ECB rate hike in September may further support the EUR.