Investing.com – The pair rose 0.2% on Tuesday. The move came after reports indicated a larger-than-expected decline in employment in the UK along with earnings numbers that were marginally lower than expected.
“The Bank of England has warned that this could be indirectly affected by data issues affecting the labor force survey, and it appears to have been deprioritised when assessing when to cut interest rates,” said James Smith, an economist at Britain's ING bank.
Given the Bank of England's lack of opportunities to communicate with the market due to the July 4 elections, MMarket participants will have to wait for the Bank of England's interest rate meeting on June 20 for more substantive information regarding the central bank's outlook and potential policy changes.
EUR/GBP is expected to trade within a range between 0.8450 and 0.8500 in the near term. Analysts are focusing on the repricing of the Bank of England rate cycle as a major factor that may influence the pair's movement This summer and look to get back to the 0.86/87 area over the next couple of months.
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