On Tuesday, the euro held firm against a softer pound, shrugging off disappointing German ZEW survey results released earlier in the session. EUR/GBP traded just above 0.8800 after bouncing from Monday’s low near 0.8765, with two-year highs around 0.8830 still in sight.
The ZEW report showed German investor confidence in the economic outlook fell to 38.5 in November from 39.3 in October, missing forecasts of 40.0. The current-conditions sub-index improved to –78.7 from –80.0 but undershot expectations of –77.5.
UK jobs data dents the pound
Earlier, the euro received a lift as sterling weakened following sluggish UK labour figures. The ILO unemployment rate for the three months to September rose to 5.0%—its highest since February 2021—compared with a consensus of 4.9%. Annual average earnings growth also slowed to 4.8% from 5.0% in the prior period, below the 4.9% forecast. Alongside stable October inflation, these labour-market headwinds bolster the case for further Bank of England easing in December.
