The pound is fairing well again against the euro today after the UK received better than expected wage data.
The latest Bloomberg figures report the GBP/EUR exchange rate to be 1.1455 this compares to yesterday’s figures of 1.1421.
Alongside the lowest levels of debt recorded since the 2008 financial crisis, the pound started to secure its gain last week despite tensions between UK and EU leaders over recent months.
Today’s good news comes as a direct response from the promising UK wage data which, TorFX currency analyst Laura Parsons, explained pushed the GBP/EUR exchange rate higher still.
Across the board, British worker’s wages have risen at the fastest pace in two years, which comes as a promising sign of a stronger future for the pound.
The sterling was hit hard in 2017 following the vote to leave the European Union which negatively impacted consumer spending.
The surprising wage results, however, which were far higher than what was forecast by economists, have set the pound in good stead for the remainder of the week.
Laura went on to add: “Growth in average earnings including bonuses increased 2.8 per cent rather than the 2.6 per cent forecast, giving Sterling a boost ahead of the Bank of England’s (BoE) interest rate decision.”
At 12 pm today, the Bank of England is expected to release its latest interest rates, a decision that Laura revealed could shoot the sterling higher still.
“If the central bank adopts a hawkish attitude tomorrow and hints at a rate hike in May, the pound might just find the energy to climb above €1.150 against the euro,” Laura explained.
If, as economists expect, the central bank hikes rates, this could be the boost the sterling needs to rise up against the euro..
“That being said, Sterling’s gains might be limited by concerns surrounding outcome of the EU Brexit summit,” added Laura.
In an announcement on Monday, news that a UK-EU Brexit treaty draft had many leaders in agreement over major concerns rallied the pound.
The deal discussed states that Britain will be free of EU rules starting from the end of December 2020 with the Government free to sign a new trade deal next year.
Conservative MP, David David released a positive statement to say: “The deal we have struck should give us confidence that a good deal for the United Kingdom and the European Union is closer than ever before.”
Investors are being urged to keep a close eye on the BoE’s interest announcements, the higher rate could mean a better exchange rate for Britons.
