Pound to Euro Interbank Rate near 6-Month High as Tories Expand Poll Lead

Pound to Euro Exchange Rate: BoE Slashes Interest Rate Causing GBP to Edge Higher against Euro

The pound to euro interbank exchange rate stands at 1.1678 today at the time of writing. This is just 0.03% below sterling’s recent six-month high versus the Eurozone’s common currency, its strongest since May 7th, reached yesterday, at 1.1682.

Sterling vs Euro near 6-Month High as Tories Ahead in Polls

One reason the pound to euro interbank exchange rate stands near this six-month high today is because the Conservative Party has increased its lead in the polls, according to respected pollsters YouGov, ahead of the UK’s December 12th general election.

In particular, the Tories now stand at 42%, up 3% from YouGov’s November 8th poll of 39%. Meanwhile, the official opposition Labour Party has increased its support by 2%, up to 28%.

This gives Prime Minister Boris Johnson’s party a theoretical 14% lead, historically enough for the winning party to gain a majority of MPs in Parliament, to form a stable government. So this has strengthened sterling.

UK Employment, Job Vacancies Fall, Which May Affect Gbp to Eur Rate

Elsewhere, it’s worth noting that both UK employment and job vacancies have fallen, according to the latest official data from the Office for National Statistics (ONS), released yesterday.

Although UK unemployment unexpectedly fell by 0.1% in the three months to September, to a joint multi-decade low of 3.8%, this was tempered by disappointing results elsewhere.

To be specific, UK employment fell by 58,000 over this period compared to a year ago, the biggest fall in four years. Meanwhile, UK job vacancies declined by 53,000, to 800,000, the fifth consecutive monthly drop.

If the UK labour market downturn continues in future, this may affect sterling vs euro interbank exchange rates.

UK Eurozone GDP Economic Figures Due This Week

Looking ahead, UK inflation statistics for October are due today, forecast at 1.6%, as is the Eurozone’s industrial production data for September, predicted at minus 0.3%.

Meanwhile, tomorrow UK retail sales figures for last month are made available, forecast for 0.2%, along with the Eurozone’s revised GDP (Gross Domestic Product) growth figures for Q3, over the Summer, pencilled in at 0.2%.

If these arrive above or below expectations, it may influence the pound to euro interbank exchange rate too, alongside the shifting UK election opinion polls.

For more information on what may influence your EUR/GBP transfer in the coming weeks, get in touch with me directly, Daniel Johnson at dcj@currencies.co.uk, or speak with a member of our team on +44 (0)1494 292 675.