UK economic data this week may interrupt the upward trend of the pound against the euro

⑴Institutional views suggest that the upcoming employment and inflation data from the UK may weaken market expectations for a rate hike by the Bank of England, thus limiting the rise of the pound against the euro. The current market pricing puts the probability of a rate hike at the November Bank of England meeting at 92%. If the unemployment rate rises and inflation comes in below expectations, this may reverse the current outlook. The UK employment data will be released on Tuesday, and the inflation data will be published on Wednesday.⑵The euro fell against the pound to 0.8411, with an intraday drop reaching a 16-month low of 0.84.