Investing.com – The pair rose 0.2% on Tuesday. The move came after reports showed a larger-than-expected contraction in UK employment and earnings figures were slightly softer than expected.
“The Bank of England warned that this could be indirectly affected by data problems affecting the labor force survey and does not appear to have prioritized it in assessing when to cut rates,” said James Smith, UK economist at ING.
Given the Bank of England’s lack of ability to communicate with the market due to the July 4th election,Market participants will have to wait until the Bank of England’s rate meeting on June 20 to get more substantive information on the central bank’s outlook and potential policy changes.
The EUR/GBP pair is expected to trade in the range of 0.8450 to 0.8500 in the near future. Analysts are focusing on a reassessment of the Bank of England’s rate cycle as a key factor that could affect the pair’s movement. this summer and look for a return to the 0.86/87 area over the next few months.
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