Weaker-than-expected UK unemployment data drives selling pressure on GBP, lifting the EUR/GBP cross in early trading.
The EUR/GBP pair climbed to 0.8550 in early European trading on Tuesday, extending gains as UK employment figures disappointed investors. The British Pound faced selling pressure following the release, which signaled softness in the labor market.
Prior to the data, the cross had traded near 0.8530, with market participants awaiting key economic indicators from Germany and the Eurozone later in the session. The ZEW Survey, a closely watched gauge of economic sentiment, is expected to provide further direction for the Euro.
Traders are monitoring the reaction in currency markets as the data reinforces expectations of diverging monetary policy paths between the UK and Eurozone.