Pound to euro exchange rate: Sterling ‘jumps’ after unexpected positive UK wage data

The pound to euro exchange rate is currently 1.1398 according to Bloomberg figures this morning.

A move so close to 1.14 returns sterling to figures seen last week.

And happily, the boost to GBP is thanks to positive data showing strong wage growth in the UK.

TorFX currency analyst Laura Parsons explained: “The pound jumped by almost a cent against the euro on Tuesday as UK wage growth came in higher-than-expected.

“GBP/EUR rallied to €1.142 as average earnings increased at the fastest rate since January 2009 and German economic sentiment declined.”

Sterling has been impacted on an almost day-to-day basis by Brexit negotiations in recent weeks, leading to fluctuations in currency.

However it is not Brexit that is expected to affect the exchange rate today – but further data releases.

Laura continued: “If today’s UK inflation data also surprises to the upside the pound could extend gains.”

Expectations are that UK inflation is expected to see a slight easing from 2.7 per cent to 2.6 per cent.

Looking ahead, the EU summit and continued Brexit negotiations are expected to continue to affect British currency.

Earlier this week, sterling failed to make any gains as talks about the Irish border stalled.

Laura said: “The pound was pressured lower against the euro at the start of the week as Theresa May’s rejection of key EU proposals over the Irish border left Brexit negotiations at an impasse.

“GBP/EUR retreated to €1.135 and could remain at this level if Brexit concerns persist.”

The government are trying to prevent a hard border in Ireland when the UK leaves the EU.

Called the backstop arrangement, discussions stalled as Theresa May refused to allow the border within the Irish Sea between Britain and Ireland.

The EU declared a border would need to be in place if an agreement isn’t met when the UK leaves next year.

If a hard border was brought in, then this would result in checks between Northern Ireland and the Republic of Ireland.

The failed talks follow rumours of a number of cabinet ministers threatening to resign.

An open-ended Brexit without set time limits is thought to have upset many members who do not agree the May’s plans.

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Martin is an enthusiastic programmer, a webdeveloper and a young entrepreneur. He is intereted into computers for a long time. In the age of 10 he has programmed his first website and since then he has been working on web technologies until now. He is the Founder and Editor-in-Chief of BriefNews.eu and PCHealthBoost.info Online Magazines. His colleagues appreciate him as a passionate workhorse, a fan of new technologies, an eternal optimist and a dreamer, but especially the soul of the team for whom he can do anything in the world.

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