EURGBP gains ground following UK jobless, German CPI

Euro-Sterling is holding positive ground below the mid-0.8500s during early European trading on Tuesday.

The EURGBP cross is edging higher following the UK labour market and German inflation data, trading around 0.8540, gaining 0.16% on the day.

The latest data released from the UK Office for National Statistics on Tuesday showed that the ILO Unemployment Rate came in worse than expected, rising to 3.9% in the three months to February from 3.8% in the previous reading.

Meanwhile, the number of people claiming jobless benefits rose by 16,800 in February from a gain of 3,100 in January. The UK Employment Change came in at -21,000 in January, versus a 72,000 increase in December.

On the Euro front, the German Consumer Price Index (CPI) report for February was in line with the market estimation. The CPI figure remains steady at 0.4% MoM and 2.5% YoY in February. The Harmonized Index of Consumer Prices (HICP) arrived at 0.6% MoM and 2.7% YoY in February, as expected.

Looking ahead, the UK monthly Gross Domestic Product (GDP), Industrial Production, Manufacturing Production, and Trade Balance for January will be released on Wednesday.

Traders will take cues from the data and find trading opportunities around the EUR/GBP cross.

(Source: OANDA)