EUR/GBP oscillates around 0.8350 ahead of UK’s Unemployment Rate and Germany’s CPI

• EUR/GBP steadies around 0.8350 as investors await the release of multiple economic indicators.
• The UK’s Unemployment Rate may remain stable while Average Earnings are expected to elevate.
• The ECB may prefer an interest rate hike despite flat German HICP.

The EUR/GBP pair is auctioning in a narrow range of 0.8349-0.8353 on Tuesday ahead of the release of multiple catalysts, which may guide the market participants for further direction. The cross is awaiting the release of the UK’s Unemployment Rate and Germany’s Consumer Price Index (CPI).

The quarterly UK jobless rate is likely to land at 3.9%, similar to its previous print. While, the Average Earnings Excluding Bonus may print at 4%, higher than the prior figure of 3.8%. Higher average earnings in a tight labor market advocate progress in achieving full employment. However, it would to interesting to watch the extent to which the increment in average earnings will be able to offset the soaring inflation in the UK.

Meanwhile, the shared currency is likely to remain uncertain on the release of Germany’s Harmonized Index of Consumer Prices (HICP). A preliminary estimate for yearly Germany’s HICP shows that the economic data will remain similar to the previous print at 7.6%. It is worth noting that the European Central Bank (ECB) has not raised its interest rates since the pandemic of Covid-19 while the Bank of England (BOE) has raised its interest rates by 25 basis points (bps) consecutively after a 15 bps rate hike in December. The BOE is expected to elevate its interest rates further to tackle the soaring inflation.