The pound jumped higher against the Euro yesterday after UK unemployment reached the lowest levels for 42 years. The headline figure has now fallen to 4.4% and whilst average earnings remained weak they did pick up by 0.1% which is a step in the right direction and something the Bank of England will likely be pleased about. The rally however has already proved somewhat limited on the better data.
UK retail sales data is released this morning at 09:30 and will be keenly watched to see if consumers are still spending on the high street. A positive number this morning could help see the pound rally again.
GBP EUR exchange rates are currently on the weaker side with levels trading below 1.10 and sitting very close to those lows seen last Autumn at the time of flash crashes and fat fingers. In fact GBP EUR is now sitting at a seven year low for this pair. Those clients looking to sell Euros and convert into sterling would be wise to consider moving sooner rather than later. Clients who have pending property sales In France and Spain and other European countries would be wise to make contact and look at the options available. A forward contract for example can be utilised to lock in the current excellent rates of exchange for selling Euros.
EU Consumer Price Index inflation data is released this morning and will be closely scrutinised considering both inflation and growth have started to pick up in the EU in recent months. A strong number this morning will only help the Euro strengthen further as it will signal to the markets that the European Central Bank should taper its asset purchasing scheme in the coming months.
If you would like further information on Euro exchange rates or any of the major currencies and to discuss how we can assist then please feel free to contact me on 0044 1494 787 478 and ask one of the team for James. Alternatively, I can be emailed directly on firstname.lastname@example.org