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Pound Euro (GBP/EUR) Exchange Rate Fluctuates as UK Labour Market Continues to Tighten
Published: 15 May at 5 PM Tags: Pound Sterling, Euro Exchange Rate, Currency Exchange, Euro Crisis, UK, Exchange Rates, Inflation, Pound Euro Exchaneg Rate,
- UK Unemployment Holds at 42-Year Low – Pound Euro (GBP/EUR) Exchange Rate Struggles to Capitalise -
The Pound Euro (GBP/EUR) exchange rate fluctuated on Tuesday, struggling to capitalise on a run of upbeat UK labour market readings.
According to the Office for National Statistics (ONS), wage growth in the UK has finally exceeded consumer price inflation (the first time in over a year), with a recorded rise of 2.9% in the three months to March.
Beyond this, unemployment held its ground at the 42-year low of 4.2%, with a surprising fall of 46,000 over the same period.
Combined, these data pules painted a robust picture of the UK’s labour market and should help keep the Bank of England (BoE) on track for a rate rise in the coming months.
This optimism was limited, however, by fresh concerns that UK negotiators will fail to break the customs deadlock – an ongoing cause of anxiety amongst the markets.
- Eurozone GDP Proves Mixed – Euro (EUR) Exchange Rates Face Ongoing Pressure -
Data for the bloc today was rather mixed, with GDP growth for Germany contracting from 2.9% to 2.3% - missing the market forecast of 2.4% (year-on-year).
This was attributed to less dynamic foreign trade, falling exports and imports and even a lack of government spending, with the German Federal Ministry for Economic Affairs positing that the five-month coalition negotiations curbed spending and contributed to the figure.
In other, slightly better news, the Bloc’s overall GDP reading held at 2.5% year-on-year and 0.4% quarter-on-quarter, whilst the latest Eurozone ZEW economic sentiment survey rallied, climbing from a score of 1.9 to 2.4.
This did little to effect the market outlook, however, with investors still not expecting the European Central Bank (ECB) to adjust their monetary policy plans for the foreseeable future.
- Pound Euro (GBP/EUR) Exchange Rate Forecast: Eurozone Inflation in the Spotlight -
Tomorrow’s big-ticket item will be the bloc’s consumer price inflation release, which analysts expect to fall year-on-year in April from 1.3% to 1.2%, and fall month-on-month from 1.0% to 0.3%.
This would be yet another step in the wrong direction for the European Central Bank (ECB), and likely give the Pound Euro (GBP/EUR) exchange rate a greater boost thanks to the ECB being positioned as overwhelmingly dovish.
There isn’t much else going on in regards to British data this week, but Thursday will feature a speech from BoE Chief Economist Andy Haldane, whose comments, hawkish or dovish, could propel or curb demand for Sterling.
The Pound Euro (GBP/EUR) exchange rate fluctuated on Tuesday, struggling to capitalise on a run of upbeat UK labour market readings.
According to the Office for National Statistics (ONS), wage growth in the UK has finally exceeded consumer price inflation (the first time in over a year), with a recorded rise of 2.9% in the three months to March.
Beyond this, unemployment held its ground at the 42-year low of 4.2%, with a surprising fall of 46,000 over the same period.
Combined, these data pules painted a robust picture of the UK’s labour market and should help keep the Bank of England (BoE) on track for a rate rise in the coming months.
This optimism was limited, however, by fresh concerns that UK negotiators will fail to break the customs deadlock – an ongoing cause of anxiety amongst the markets.
- Eurozone GDP Proves Mixed – Euro (EUR) Exchange Rates Face Ongoing Pressure -
Data for the bloc today was rather mixed, with GDP growth for Germany contracting from 2.9% to 2.3% - missing the market forecast of 2.4% (year-on-year).
This was attributed to less dynamic foreign trade, falling exports and imports and even a lack of government spending, with the German Federal Ministry for Economic Affairs positing that the five-month coalition negotiations curbed spending and contributed to the figure.
In other, slightly better news, the Bloc’s overall GDP reading held at 2.5% year-on-year and 0.4% quarter-on-quarter, whilst the latest Eurozone ZEW economic sentiment survey rallied, climbing from a score of 1.9 to 2.4.
This did little to effect the market outlook, however, with investors still not expecting the European Central Bank (ECB) to adjust their monetary policy plans for the foreseeable future.
- Pound Euro (GBP/EUR) Exchange Rate Forecast: Eurozone Inflation in the Spotlight -
Tomorrow’s big-ticket item will be the bloc’s consumer price inflation release, which analysts expect to fall year-on-year in April from 1.3% to 1.2%, and fall month-on-month from 1.0% to 0.3%.
This would be yet another step in the wrong direction for the European Central Bank (ECB), and likely give the Pound Euro (GBP/EUR) exchange rate a greater boost thanks to the ECB being positioned as overwhelmingly dovish.
There isn’t much else going on in regards to British data this week, but Thursday will feature a speech from BoE Chief Economist Andy Haldane, whose comments, hawkish or dovish, could propel or curb demand for Sterling.
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Source: moneytransfer.co.uk