Renowned FX strategist Chris Turner from ING has reported a decrease in EUR/GBP following the release of the latest UK jobs data, which exceeded expectations.
EUR/GBP Forecasted to Reach 0.8400
Turner explains, “July’s average earnings were in line with forecasts, but the employment growth in July surpassed expectations. Additionally, the rise in jobless claims in August was lower than anticipated. These volatile jobs figures could potentially widen the gap between the anticipated easing cycles of the Bank of England and the Federal Reserve.”
Market projections for the rest of the year show a 107 basis point cut by the Fed compared to only 48 basis points for the BoE. Turner predicts that EUR/GBP could trend towards 0.8400, with potential resistance at that level due to expected support for the euro from the upcoming ECB meeting this Thursday.
Stay tuned for further updates on this evolving market situation.