Pound to euro exchange rate: Sterling ‘edges HIGHER’ amid record high UK employment levels

The pound to euro exchange rate has fallen in favour of the sterling currency today, Wednesday 16 May.

Pound sterling is converting to €1.1418 according to Bloomberg figures correct at 7:20am this morning.

This compares to yesterday, when it stood at the lower value of €1.1355.

The day before, on Monday, it converted to the slightly lower euro value of €1.1332.

Yesterday, UK employment rates reached a record with strong jobs growth reported for the first three months of 2018.

The employment rate increased by 0.4 points, bringing it to 75.6 per cent for the first quarter of the year.

TorFX currency analyst Laura Parsons commented today on the pound’s position.

“Mixed UK employment data initially gave the pound little reason for cheer on Tuesday,” she said.

“But Sterling did manage to edge higher against several of the majors before the close of the European session.”

“The GBP/EUR exchange rate approached the €1.140 level despite Eurozone GDP holding steady.

“The pairing could stage a modest rally later today if European Central Bank (ECB) President Mario Draghi delivers a dovish speech in Frankfurt.

“Meanwhile, final Eurozone inflation figures may weigh on the euro if the annual and monthly figures are negatively revised as forecast.”

Yesterday, the pound to euro exchange rate fell in favour of the European currency.

Laura Parsons, TorFX currency analyst, predicted further “volatility” for the pound currency.

“After a pretty dull start to the week, the GBP/EUR exchange rate could be set for volatility this morning.

“So far German growth data has come in below forecast, with quarterly expansion of 0.3 per cent and annual growth of 2.3 per cent – figures of 0.4 per cent and 2.4 per cent had been projected.

“If this report is followed by cheery UK employment figures the pound could push higher against the euro.

“The GBP/EUR exchange rate could also benefit if Eurozone growth data misses the mark and the ZEW economic sentiment surveys show a dip in confidence in the currency bloc and its largest economy.”

An forecast interest rate rise by the Bank of England, which could have caused major changes in the exchange rate, failed to materialise last week.

The Bank of England put an interest rate hike on hold after the Monetary Policy Committee (MPC) voted 7-2 to leave rates as they are this month.

More News