The pound euro (GBP/EUR) exchange rate is falling after small gains yesterday.

The pound is falling after UK jobs data showed unemployment rose to 4.3%, up from 4.2%, and average earnings, including bonuses, eased slightly to 5.9% from 6%.

Although wage growth is sticky, the market is still considered the data keeps the BoE on track for rate cuts this year. The market is pricing in two rate cuts this year.

The euro is rising after German ZEW economic sentiment was stronger than expected, rising to 47.

The data supports the view that the economy is recovering.