EUR/GBP Hits Lowest Level Since May 2025 Following Strong UK Jobs Data

Key Facts

1The EUR/GBP cross fell 0.38% to trade around 0.8395, reaching levels not seen since May 2025.

2Stronger-than-expected UK labour market data bolstered expectations for Bank of England interest rate hikes.

The EUR/GBP cross fell 0.38% to trade around 0.8395, reaching its lowest level since May 2025. FXStreet reported that stronger-than-expected UK labour market data bolstered expectations for Bank of England interest rate hikes.

Data released on October 20, 2026, showed the UK unemployment rate falling to 4.7%, beating forecasts of 4.9%. Employment change recorded an increase of 102,000, significantly higher than the expected 20,000, reflecting labor market resilience following the 0.1% GDP growth reported on October 15, 2026.

Market participants are looking ahead to the UK annual inflation rate release on October 21, 2026, which is forecasted at 3.4%. Bank of England Governor Andrew Bailey is also scheduled to deliver a speech on the same day, potentially providing further clarity on monetary policy.