The Pound’s strong momentum is set to face a key challenge on Tuesday as the UK releases its jobs report. Wage growth figures – especially in the private sector – will be watched very closely as they now represent the second most important input for the Bank of England after services inflation. 

Later in the week, we’ll also see the UK’s January GDP report, February’s Retail Sales and the BoE's inflation attitude survey.

Back in February, EUR/GBP’s exploration of the 0.8500 area was very short-lived and followed by a sharp rebound. Unless UK data surprises on the strong side, we doubt EUR/GBP can fall much further from these levels.