EUR GBP Flat Before Latest UK Employment Data

The EUR GBP exchange rate was trading flat on Monday as expected with markets awaiting the latest UK employment data. That will be followed by another reading of the second quarter GDP in Europe.

The EUR to GBP rate is trading at 0.8510 ahead of the data and Wednesday will see the release of inflation for both the UK and Eurozone economies.

UK employment should beat expectations

The UK will release the latest version of employment figures for June and July with the economy seeing strength from the latest reopening. The official consensus is for a return of 75k new jobs added but many feel the country could outperform after the services sector roared back to life.

The CIPD survey on Monday also noted that businesses were looking to hire at their fastest pace in eight years so the labour market should be supported. However, there is still the issue of furlough, which is due to end after September. The Bank of England’s governor wanted to see a strong jobs market before any talk of raising interest rates, but the furlough position will have to be clarified by the government.

GDP growth for the Eurozone will get a second reading today but may not differ too far from the 2% reading expected. The standout of the big economies were Italy and Spain, but Germany missed expectations for growth after facing supply chain issues which hit the automotive sector.

The UK is still leading the way with the reopening of the economy, but some are expecting cases to continue their rise as the summer ends and autumn temperatures drop, alongside the return of UK schools.

Europe looks to follow the UK and ‘live with’ the virus

The battle against coronavirus is set to move into long-term, low-intensity mode in Europe, as countries such as Germany, Italy and France try to follow the UK’s lead live with it.

Governments are making plans for booster shots, masks, frequent testing and limited social-distancing measures to keep the virus in check ahead of the autumn.

Germany said this week that only vaccinated people, those who had recovered from an infection or people with a recent negative test would be able to go to restaurants, hospitals and other indoor venues. Masks will remain compulsory in closed spaces and on public transport, even for those vaccinated.

Countries such as France are also following the ‘health passport’ idea which has been criticized by restaurants and the public.

The moves come as the country nears a more than 70% vaccination rate and that could boost the euro in the weeks ahead.

Meanwhile, former UK Prime Minister Gordon Brown took a pop at Europe’s vaccine hoarding, saying it was “vaccine nationalism” and a “neocolonial approach to global health”.

His comments related to the lack of vaccinations available in countries in Africa as the west shares them amongst friends. The EURGBP will look to build on last week’s tepid rally from the yearly lows.

The post EUR GBP Flat Before Latest UK Employment Data appeared first on Euro Rate Forecast.