\n David Woodsmith
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STORY LINK Pound-to-Euro Rises as UK Jobs Report Lifts BoE Outlook<\/a><\/p>\n <\/p>\n The Pound Euro (GBP\/EUR) exchange rate rallied on Tuesday as markets reacted to the UK\u2019s latest labour market report.
<\/p>\n At the time of writing, GBP\/EUR was trading at \u20ac1.1596, up 0.3% on the day.
<\/p>\n The Pound (GBP) climbed on Thursday after upbeat UK employment figures saw investors rein in bets on more Bank of England (BoE) interest rate cuts, giving Sterling a lift.
<\/p>\n The latest British jobs report indicated that both unemployment and wage growth held steady in the three months to June, suggesting that the recent slowdown in the labour market may be easing.
<\/p>\n Employment growth was particularly striking, with the number of people in work jumping by 238,000 over the period. This not only outpaced the 134,000 gain seen previously but also came in well above forecasts for a modest 65,000 rise.
<\/p>\n July\u2019s figures added to the upbeat tone. HMRC payroll data revealed a fall of just 8,000 positions \u2013 far better than the predicted 60,000 drop \u2013 while jobless claims fell by 6,200, defying expectations for an increase of 19,700.
<\/p>\n The Euro (EUR) lost ground after fresh German data revealed a sharper-than-anticipated slump in investor confidence.
<\/p>\n August\u2019s ZEW economic sentiment index slid from 52.7 to 34.7, coming in well below forecasts of 40. This was the first downturn since April, signalling renewed caution among investors as worries over potential US tariffs combine with persistent signs of weakness in the Eurozone\u2019s largest economy.
<\/p>\n The disappointing figures reinforced concerns that Germany\u2019s recovery momentum may be faltering, putting pressure on the single currency.
<\/p>\n Looking forward, GBP\/EUR could be relatively muted on Wednesday amid a lack of high-impact UK and Eurozone economic data.
<\/p>\n For EUR investors, attention will be on Germany\u2019s final inflation figures for July alongside wholesale price data. Unless the inflation reading deviates from the initial estimate, the impact on EUR is likely to be minimal. However, wholesale prices are projected to have risen last month, which could provide the single currency with a slight boost.
<\/p>\n For Sterling, traders may opt to stay cautious ahead of Thursday\u2019s second-quarter GDP results. Growth is expected to have slowed sharply \u2013 from 0.7% in Q1 to just 0.1% in Q2 \u2013 a figure that could spark a sell-off in the Pound if confirmed. \n\t\t\t\t\tLike this piece? Please share with your friends and colleagues:<\/p>\n \n\t\t\t\t\t\tInternational Money Transfer?<\/b> Ask our resident FX expert a money transfer question<\/a> or try John’s new, free, no-obligation personal service!<\/a> ,where he helps every step of the way,![\"gbp-to-euro-rate-forecast-3\"](\"https:\/\/www.europesays.com\/uk\/wp-content\/uploads\/2025\/05\/pound-to-euro-3.jpg\")
\nPound Sterling Climbs Against Euro as UK Jobs Data Dents BoE Rate Cut Bets<\/p>\n
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Markets welcomed the stronger-than-expected readings, with traders betting that a resilient jobs market could prompt BoE policymakers to take a more measured approach to future interest rate cuts.
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