GBP/EUR: Brexit Nerves Weigh On Pound

The pound-euro exchange rate is treading water around €1.1325 for a second day.

The pound rose modestly yesterday after UK jobs data showed that while unemployment rose, wage growth was also stronger than expected at 5.9%.

Today UK inflation data is in focus and is expected to show that CPI cooled to 9.8% YoY, down from 10.4% in February.

The euro fell yesterday as German ZEW economic sentiment surprise, falling to 4.1 from 13.5. Expectations had been for a rise to 15.

Eurozone CPI is expected to confirm the initial 6.9% preliminary reading and core CPI is set to rise to 5.7%.

Hot inflation data would support the recent hawkish commentary from the ECB officials.