Pound Recovers Over Euro Following UK Jobs Report
  • Pound (GBP) rises as economy reopens
  • UK unemployment data in focus
  • Euro (EUR) trades mixed versus majors
  • ECB in focus later in the week

The Pound Euro (GBP/EUR) exchange rate is edging a few pips lower after strong gains in the previous session. The pair settled +0.63% higher on Monday at €1.1617, as it continued its recovery. At 05:15 UTC, GBP/EUR trades -0.08% at €1.1606.

The Pound surged ahead in the previous session as the reopening of the UK economy is giving the Pound a helping hand. Meanwhile the latest vaccine data from the UK is also helping to under pin the UK currency.  More than 43 million vaccines have been administered in the UK, including 10 million second doses. The milestone one in five adults have received both vaccines now. This should help the reopening of the economy continue along its path.

Today UK jobless claims data will be in focus. Expectations are for the unemployment rate to tick higher to 5.2%, after unexpectedly declining to 5% in the three month to January. With the UK economy reopening the outlook for the UK labour market is improving. The Bank of England downwardly revised its unemployment rate, now expected to peal at 6.5%, rather than the 7.5% previously expected.

The claimant count is a more timely indicator of the health of the labour market. This ticked higher in February to 7.5% although this could be near the peak with the rate expected to start falling back toward 7% soon.

The Euro fell versus the Pound but did manage to push higher versus the US Dollar. Today, further weakness in US Dollar in lifting the Euro.

There was little in the way of economic data to drive the common currency. Although optimism surrounding the vaccine rollout in the Eurozone is starting to pick up after a sluggish start.

There is no high impacting Eurozone data due to be released today. Investors are cautiously looking ahead to the European Central Bank. The ECB are not expected to move on policy but investors will be watching to see whether ECB President Christine Lagarde is starting to adopt a less dovish stance now that the outlook could be starting to improve.