The EURGBP exchange rate is likely to be influenced by the release of employment data for the United Kingdom and economic sentiment data for Germany and the eurozone.
EURGBP – Daily Chart
The EURGBP exchange rate was rejected at the 0.8658 level for the third time in the last few months, and there is a possibility that it may continue to fall.
The UK is expected to add 75,000 new jobs in February, a decrease from the 102,000 added in January. The unemployment rate is expected to remain at 4%, according to jobs figures to be released on Tuesday.
The economic sentiment indices for Germany and the euro area will be published next. Germany is expected to remain in negative territory, with a sentiment reading of -14.7.
Wednesday will be another pivotal day for the pair, as inflation figures for the UK are expected to fall to 6.8% from 7.9%. This could alleviate expectations of further UK rate hikes in the future.
The same day will also witness the release of preliminary estimates for the European GDP, which is anticipated to be 0.3%, with an annualised figure of 0.6%. However, this is a decrease from 1.1%, indicating that the European economy is slowing down.