Pound to euro exchange rate drops as fresh Brexit concerns hit headlines.
EURO FX RATES TODAY
EURO = 0.8700
FOR LARGER AMOUNTS CALL US ON 02871374213
POUND to euro exchange rate dropped last night as “fresh Brexit concerns continue to dominate the headlines,” say experts.
Pound to euro exchange rate dropped by half a cent last night due to pessimistic UK wage growth data and ongoing Brexit fears.
Experts warn that upbeat domestic inflation data is much-needed today for the pound to be boosted.
“With UK wage growth data providing little cause for cheer and fresh Brexit concerns dominating headlines, the GBP/EUR exchange rate dropped by around half a cent during the European session.
“It will take some upbeat domestic inflation data to boost the pound this morning, with a stronger than expected increase in consumer price pressures supporting Bank of England (BoE) interest rate hike expectations.”
Yesterday the latest UK jobs market data revealed that the pace of wage growth without bonuses has slowed from 2.8 per cent to 2.7 per cent, while the “with bonuses” reading has dipped from 2.6 per cent to 2.5 per cent.
Slowing wage growth can mean reduced retail activity and lower consumer spending, which is part of the reason for GBP losses today.
If wage growth falls below the pace of inflation then the UK economy is considered less stable, which raises the risk of another wage squeeze for UK households.
Economists are on the fence about what this data means for the Bank of England (BoE) and are taking a cautious approach.