Pound to euro exchange rate: Sterling BOOST thanks to UK wage growth
POUND to euro exchange rate was boosted by hopes that UK wage growth could accelerate in 2018. 1 GBP stands at €1.130 EUR. The Post Office is currently offering €822.83 for £750.
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The pound to euro exchange rate has struggled this week so far but hopes that UK wages will be boosted has set the currency on the upward swing.
Yesterday the pound slipped against most major currencies, but in the best 24 hours the currency has turned around.
The pound is up from €1.1225 to €1.130.
TorFX currency analyst Laura Parsons said: “Hopes that UK wage growth could accelerate in 2018 bolstered Sterling exchange rates on Wednesday and pushed GBP/EUR 0.5 per cent higher.”
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Pound to euro exchange rate: Sterling BOOST to 1 GBP to €1.130 EUR
Ms Parsons also credited the lift in the pound to the Bank of England.
She said: “Bank of England (BoE) official Michael Saunders gave the pound a lift when he asserted that average earnings will increase.
“It’s likely that interest rates will need to keep rising over time.
“He added that the central bank will be ‘gradually lifting our foot off the accelerator, with no need to put the brakes on’.
“Meanwhile, the euro struggled after the Eurozone’s latest inflation report confirmed that consumer price pressures moved further away from the European Central Bank’s (ECB) 2 per cent target.”
What is more, the pound could rise further today.
“The GBP/EUR exchange rate was able to push above €1.130 and could extend gains today if ECB officials adopt a dovish attitude to monetary policy in the plethora of speeches set to be delivered this afternoon,” Ms Parsons added.
Thankful political discord in Germany has led to the pound’s performance increasing slightly earlier this week.
Ms Parsons said: “Germany’s coalition deal suffered a setback, with the Berlin branch of the Social Democrats voting against forming a grand coalition with Angela Merkel’s CDU/CSU.
“The GBP/EUR exchange rate could extend gains today if the Eurozone’s consumer price index confirms that inflation moved further away from the European Central Bank’s (ECB) 2 per cent target.”
Ms Parsons predicted inflation data would result in volatility for the UK currency.
She also claimed that Sadiq Khan had undermined the pound.
She said: “The pound, meanwhile, was undermined by London Mayor Sadiq Khan, who offered a fresh warning over the potential negative impact of a no-deal Brexit scenario.”
