Pound Climbs 1% vs Dollar Across The Week As BoE Predicts Fall In Unem
  • Pound firm against the EUR for second day
  • UK investors are eyeing the labour market report
  • Germany’s ZEW economic sentiment to be release later
  • Major stock indices trade lower on China growth worries

The Pound Euro (GBP/EUR) exchange rate starts the first trading session on a positive note ahead of key economic data. The pair rose by +0.31% in the previous session settling on Monday at €1.1865, after trading in a range between €1.1805 – €1.1877.

At 05:46 UTC, GBP/EUR trades -0.06% at €1.1858.

The unemployment rate in the UK is expected to be flat at 3.8% in the three months through June. The number of people claiming unemployment-related benefits is expected to decline to -32k in July from the previous -20k.

Meanwhile, in the EU the spotlight is on the German and Eurozone ZEW economic sentiment data. The assessment of the economic sentiment in Germany took a deep dive to -53.8 in July and according to the economists’ consensus, it should slightly ease to -52.7 in August.

The consumer sentiment in Germany plunged below the readings recorded at the beginning of the 2020’s lockdowns.

“Expectations for energy-intensive and export-oriented sectors of the economy have fallen particularly sharply,” said ZEW president Achim Wambach.

At the same time, the ZEW indicator of economic sentiment for the Euro Area last time came in at -51.1 compared to a forecasting reading of -42.5 for August.

Elsewhere, UK’s FTSE 100 and Germany’s DAX traded lower -0.12% respectively -0.57% on the first trading session of the week amid a slowdown in economic activity in China.