Euro trims some losses as British Pound falls following UK employment data

On Tuesday, the Euro (EUR) managed to print minor gains as the British Pound (GBP) experienced a decline following mixed UK employment data. The EUR exchanged at the 0.8560 mark at the time of writing, yet remained near the two-week lows of 0.8552, which were reached early in the day. This was following a nearly 0.5% dip in the preceding two trading sessions.

The UK National Statistics Office unveiled data on Tuesday that showed the ILO Unemployment Rate remained constant at 4.9% for the three months leading up to July, contrary to predictions of an increase to 5%. However, jobless claimants surged by 27.8K, which is over three times the anticipated 8.3K rise and followed an 11.8K drop in the previous month. This data was released around six weeks after the end of the month.

The UK calendar is packed for the week, with August inflation data expected on Wednesday and the Bank of England's (BoE) monetary policy decision being the highlight on Thursday. The BoE is widely anticipated to maintain interest rates unchanged, following Governor Bailley's recent comments countering the notion that rate hikes are "inevitable" at a recent UK Parliament meeting.

The bank's committee, however, is likely to display a split vote, and investors will scrutinize the number of dissenters to gauge the prospects of future rate hikes.

Earlier on Tuesday, a report by The Telegraph disclosed that the BoE plans to revamp its bond-selling scheme and cease selling 20- and 30-year yields, which are contributing to the UK's borrowing costs amid global bond market turbulence. In the Eurozone, data released on Tuesday revealed that the French Consumer Price Index (CPI) eased in August, while Spain's consumer inflation surged to its fastest year-on-year pace in the last three years.

Later in the day, the German ZEW Economic Sentiment Index and July's Eurozone Trade Balance data will conclude the trading day's calendar.