EUR/GBP tumbles below 0.8660 on an increment in UK Claimant Change data

  • EUR/GBP has picked offers as numbers of jobless benefits have increased by 6.3k.
  • The UK jobless rate has declined to 3.6% vs. the forecast of 3.8%.
  • A decent improvement in labor cost index data will delight UK households.

The EUR/GBP pair has slipped below 0.8660 after the release of the addition in UK Claimant Count change data. The UK economy has reported an increase in jobless benefits numbers by 6.3k against the forecast of a decline of 9.2k and the prior decline of 14.5k. UK Office for National Statistics has reported a decline in the Unemployment Rate to 3.6% against the estimates and the prior release of 3.8%.

The Average Hourly Earnings data has improved significantly to 5.2% vs. the expectations of 5.0% and the former figure of 4.7%. This is going to delight the households as it will support them to offset the higher payouts led by ramping up inflation.

Going forward, investors’ entire focus will shift toward the UK inflation data, which will release on Wednesday. As per the estimates, the headline US Consumer Price Index (CPI) figure will shift minutely higher to 10.2%, 10 basis points (bps) higher from the July print. Also, the core PI that excludes fossil fuels and food prices will increase to 6.3%, similarly by 10 bps. This may create more consequences for the households.

Also, it will force the Bank of England (BOE) to come forward with higher interest rates in its September monetary policy meeting. 

On the Eurozone front, the energy crisis has deepened significantly after Russia cut-off energy supply from Nord Stream 1 pipeline. This is going to force the firms to shut down their plants, which have a higher dependency on energy for their production activities. While large-scale firms will display heavy losses in the upcoming result season amid their inability to pass on the impact of higher production costs.

EUR/GBP

OVERVIEW
Today last price0.8675
Today Daily Change0.0013
Today Daily Change %0.15
Today daily open0.8662
TRENDS
Daily SMA200.855
Daily SMA500.8492
Daily SMA1000.8512
Daily SMA2000.8447
LEVELS
Previous Daily High0.8722
Previous Daily Low0.865
Previous Weekly High0.8712
Previous Weekly Low0.8566
Previous Monthly High0.8653
Previous Monthly Low0.834
Daily Fibonacci 38.2%0.8695
Daily Fibonacci 61.8%0.8677
Daily Pivot Point S10.8634
Daily Pivot Point S20.8605
Daily Pivot Point S30.8561
Daily Pivot Point R10.8707
Daily Pivot Point R20.8751
Daily Pivot Point R30.878