• EUR/GBP remains subdued following the inflation data release from Germany.
• German Harmonized Index of Consumer Prices maintained a 2.0% YoY increase in August, as expected.
• The ILO UK Unemployment Rate eased to 4.1% in the three months leading up to July, down from 4.2% in June.

EUR/GBP depreciates for the second successive session, trading around 0.8440 during Tuesday’s European hours. The Euro faces challenges against the Pound Sterling (GBP) following the inflation data from Germany.

Germany's Harmonized Index of Consumer Prices (HICP) maintained a 2.0% year-on-year increase in August, in line with expectations. The monthly index showed a steady decline of 0.2%, also as forecasted. Similarly, the Consumer Price Index (CPI) remained stable at 1.9% year-on-year in August, meeting market expectations.

The recent headline inflation from the Eurozone remains near 2%, coupled with mixed Gross Domestic Product (GDP) data has reinforced expectations of a potential rate cut by the European Central Bank (ECB) at upcoming Thursday's policy meeting.

The Pound Sterling (GBP) receives support from the mixed employment data from the United Kingdom (UK). ILO Unemployment Rate eased to 4.1% in the three months to July, following June’s 4.2% print, the data published by the Office for National Statistics (ONS).

UK Claimant Count Change showed that the change in the number of unemployed people fell to 23.7K in August, falling short of the market expectations of 95.5K and the previous 102.3K readings. Average Earnings Including Bonus (3Mo/Yr) came in at 4.0% in July, against the expected 4.1% and prior 4.6% readings.