The pound euro(GBP/EUR) exchange rate rose on Tuesday, pairing Monday’s losses.
The pound rose as the unemployment rate unexpectedly fell to 4.2% in the three months to June, down from 4.4%. Meanwhile, wage growth excluding bonuses was also stickier than expected, at 5.4%, down from 5.7% but still well ahead of the 4.5% forecast.
The data comes ahead of UK inflation data tomorrow, which is expected to rise to 2.3% YoY.
The euro has fallen after German ZEW economic sentiment plunged in August to 19.2 from 48.7, marking the largeset drop in sentiment since July 2022, fueling economic slowdown fears.