The pound euro (GBP/EUR) exchange rate is falling on Tuesday after modest gains yesterday.
The pound fell after UK data showed that wage growth slowed to a level not seen since 2022 and unemployment rose.
Wage growth eased to 4.7%, while private sector pay slipped to 4.4%, signalling a softening labour market that could prompt further BoE rate cuts. Markets now expect a 25 bps cut in March.
Meanwhile, the euro gained as French PM Lecornu suspended Macron’s pension reform, easing political tensions. German ZEW sentiment rose slightly to 39.3, below forecasts, keeping attention on upcoming industrial data.