The EURGBP exchange rate has economic data ahead with German consumer price data and UK jobs numbers.
EURGBP – Daily Chart
EURGBP has dipped from the 0.8700 level, and there may be a chance to move toward the support ahead of 0.8600 with the coming data. The 0.8750 resistance is still the obstacle to further gains.
The German consumer price inflation figures are released at 2 pm HKT, with traders expecting a 2.4% reading, identical to the August figure.
The UK unemployment rate is expected to remain the same at 4.7% with 232k jobs added last month. A higher number could bring down the jobless rate and add to the GBP strength as the pair retreats from resistance.
The UK government’s latest budget will be released in around a month’s time, and the pound will have some time to find strength before some expected harsh measures. A speech by Bank of England governor Andrew Bailey will happen overnight at 1 am HKT, so traders should check for any moves off the back of that in the morning.
It’s an important week for the pound with the International Monetary Fund (IMF) gathering for its annual meeting in New York. The group will deliver its latest forecasts and will give an update on the UK economy. In July, the IMF upgraded its GDP forecast for the UK economy to 1.2 per cent this year. A strong forecast would be a boost for the British pound after recent struggles. Recent data showed record withdrawals from UK equity funds in the third quarter of 2025. The UK needs to see new investment, but the government seems to be going into reverse with higher taxes and an exodus of businesses.
Germany’s government revised its 2025 growth forecast to 0.2% last week and to 1.3% next year. Europe’s largest economy has shrunk for the past two years, but there have been some signs of recovery in recent weeks.
