• EUR/GBP remains in the negative territory after the release of the economic data from both economies.
• The UK ILO Unemployment Rate (3M) (Auf) eased to 4.0%, down from July’s 4.1% reading.
• The annual inflation in France increased by 1.1%, while in Spain, it was recorded at 1.5% in September.

EUR/GBP continues to lose its ground for the third successive day, trading around 0.8350 during the European session on Tuesday. The EUR/GBP cross remains subdued following the release of mixed employment data from the United Kingdom (UK).

The UK ILO Unemployment Rate fell to 4.0% in the three months leading up to August, down from 4.1% in July and below the market forecast of 4.1%. Employment Change for August saw a notable increase of 373,000, up from 265,000 in July. Meanwhile, Average Earnings excluding Bonuses grew by 4.9% year-on-year for the same period, meeting expectations but slightly below the 5.1% growth registered in July.

Traders will likely focus on a series of key economic data from the United Kingdom, set to be released on Wednesday, including the Consumer Price Index (CPI), the Producer Price Index (PPI) and the Retail Price Index. These data releases could influence the Bank of England's (BoE) policy outlook. However, BoE officials have indicated that they may resume rate cuts at the upcoming meeting in November.

In the Eurozone, France's Consumer Price Index (CPI) fell by 1.2% month-over-month in September, following a 0.5% increase in August. This marks the sharpest monthly decline in prices since the series began in 1990. Year-on-year, inflation rose by 1.1%, down from 1.8% in August, primarily driven by significant drops in energy prices and a slowdown in service costs.

In Spain, annual inflation stood at 1.5% in September, the lowest level since March 2021, down from 2.3% in the previous month. Monthly inflation decreased by 0.6% in September, as expected, while annual core inflation also fell by 2.4%.