The pound euro (GBP/EUR) is falling to €1.1350 after four days of gains.
The pound is falling sharply after weaker-than-expected UK labour market data raised expectations of a December BoE rate cut.
Unemployment rose to 5% and payroll data showed another 32,000 jobs lost in October, with wage growth cooling to 4.6%. Markets now see an 80% chance of a December rate cut.
The euro is rising despite weaker German ZEW sentiment, which unexpectedly fell to 38.5 from 39.3. expectations had been for a rise to 40.00. A lack of confidence in the ability of economic policy to address pressing issues and structural problems is causing concern.
Attention is turning to tomorrow’s German inflation figures.