GBP continues to struggle against the single currency even with the release of encouraging data out of the UK this week.
The pound is buying €1.16 after sliding from €1.17 yesterday.
Yesterday the unemployment rate was reported at the lowest level seen in more than four decades.
The jobless total fell by 53,000 to 1.54 million in the quarter to March, a rate of 4.6 per cent, the lowest since summer 1975 when Labour’s Harold Wilson was in Number 10.
Employment has increased by 122,000 to almost 32 million, the highest since records began in 1971, reported the Office for National Statistics (ONS).
But the encouraging jobs data failed to boost the exchange rate.
Laura Parsons, currency analyst at TorFX, said: “The UK’s latest jobs data might have shown that the nation’s unemployment rate dipped to a historic low but the pound remained down in the dumps on Wednesday.
“Weak UK wage growth heightened concerns that consumer spending will be garrotted in the months ahead as inflation continues rising.
“Today’s UK retail sales report could send the pound to fresh multi-week lows against the euro if it reveals a slump in spending, but a better-than-forecast result might just give the pound the oomph it needs to stage a recovery before the weekend.”
UK inflation data released earlier this week also failed to benefit the pound.
The Consumer Price Index (CPI) measure of inflation reached 2.7 per cent in April, the highest rate since September 2013.
This inflation jump would typically benefit the pound as investors price in a possible Bank of England (BoE) interest rate hike to offset the cost of living.
