The pound euro (GBP/EUR) exchange rate is rising after losses yesterday.

The pound is recovering after UK jobs data shows that unemployment ticked higher to 4.3% and the total number of employed fell by 200k. But wage growth rose to a record 8.5% which is a headache for the BoE.

Higher inflationary pressures keeps the pressure on the central bank to hike interest rates again.

The euro has recovered from daily lows after data showed that Spanish inflation rose to 2.4% from 2.1%

Attention is now on the German ZEW economic sentiment which is set to fall to -15 from -12.3, highlighting the deteriorating outlook in the region.