EUR/GBP Muted Reaction to UK Jobs Data, awaits EU CPI Print

EUR/GBP Muted Reaction to UK Jobs Data, awaits EU CPI Print

The EUR/GBP pair broke through 0.7800 handle after the release of UK employment figures that portrayed better-than-expected picture of the UK labor market.

Analysts were pricing-in weaker data, but the report delivered a positive surprise by showing that the number of people claiming unemployment-related benefits during April declined by 2,400 vs the expected rise of 4,000. Meanwhile, the unemployment rate held steady at 5.1% and wage price growth for March witnessed a sharp rise to 2.0% from a growth of 1.8% in the previous month.

Although the reaction to stronger UK jobs report remained muted across GBP pairs, but was enough to push the EUR/GBP cross a tad below 0.7800 handle. The pair, however, managed to recovery back to 0.7815 as market players now await to see the final print of the EUR CPI for the month of April, which if disappoints on the downside now seems to trigger a fresh leg o weakness or the pair.

Technical levels to watch

Below 0.7800 handle, next support is pegged at 0.7780, which if broken exposes 0.7735 support ahead of 0.7700 and 0.7650 round figure mark supports.

Meanwhile on the upside, 0.7820 seems to invites fresh offers, beyond which 0.7850 and 0.7900 come back in sight. However, in order to negate any bearish outlook, the pair need to conquer a strong supply zone near 0.7925-30 area.