• The EUR/GBP declined to 0.8540, below the 200-day SMA.
• UK employment data bolstered the Pound Sterling during the European session.
• Sentiment data made the Euro lose interest during the session.

Tuesday witnessed the EUR/GBP pair fall, after the release of UK employment data, which supported the Pound Sterling. On the other hand, weak European Sentiment figures weighted on the Euro.

The UK released mixed labor market data for the three months ending in June. Average weekly earnings, excluding bonuses, rose by 5.4% YoY, aligning with expectations but slightly above the Bank of England's (BoE) Q2 projection of 5.1%. When including bonuses, total earnings growth slowed to 4.5% YoY, a 1.2 percentage point decrease. This deceleration in wage growth could support the BoE's easing stance, though upcoming Consumer Price Index (CPI) data will be crucial. Additionally, unemployment unexpectedly dropped to 4.2%, the lowest since February.