GBP/EUR: Will UK Service Sector PMI Drag Pound Lower?

The Pound Euro (GBP/EUR) exchange rate is ticking a few points lower after strong gains yesterday.

The Pound jumped higher on Monday following hawkish comments from BoE Governor Andrew Baily, who said he was uncomfortable with inflation at this level.

UK unemployment data is expected to show unemployment ticking lower to 4.4%. The BoE is particularly focused on the labour market as the furlough scheme ends.

The Euro came under pressure on MoNday following cautious comments from ECB President Christine Lagarde who pushed back on the likelihood of an interest rate hike.

Today Eurozone GDP data is expected to show that the economy grew 2.2% QoQ.