EUR/GBP finds interim cushion near 0.8550 with investors focusing on the UK data.
UK’s Average Earnings Excluding Bonuses are estimated to have declined to 4.6% from the prior release of 5.7%.
EUR/GBP is on the verge of delivering a Falling Wedge breakout.
The EUR/GBP pair discovers a temporary support near 0.8550 in Monday’s European session after a two-day correction from a more than three-month high of 0.8625. The asset finds support as the Pound Sterling (GBP) gains strength, with investors focusing on the United Kingdom Employment data for three-months-ending July and the consumer inflation data for July, which will be published on Tuesday and Wednesday.
The economic data will indicate whether the Bank of England (BoE) will deliver subsequent rate cuts in September. From the UK Employment report, the ILO Unemployment Rate is expected to have increased to 4.5% from the prior release of 4.4%. Average Earnings Excluding Bonuses are estimated to have decelerated significantly to 4.6% from 5.7% in three-months ending May.
A higher jobless rate and slowing wage growth momentum would dampen the Pound Sterling’s appeal, as they will boost expectations of more BoE rate cuts.
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