The pound euro exchange rate is edging a few points lower after gains yesterday.

Attention is on UK labour market data where the unemployment rate is expected to hold steady at 3.7% and wages including bonuses are expected to ease slightly to 5.1%, from 5.7%.

Cooling wage growth could take pressure off the BoE to continue hiking interest rates.

The euro has been broadly supported by hawkish ECB bets with a 25 bps hike expected in May but a 50 bps hike is still on the table.

Attention now turns to ZEW German economic sentiment which is expected to improve further, rising to 15.3 from 13 in March.