The pound to euro exchange rate is on a stronger footing on Tuesday amid the release of UK employment figures. Sterling has been at the mercy of the UK’s ongoing Brexit negotiations for months, plummeting with the prospect of a no deal and re-building after signs of support for a Withdrawal Agreement and Article 50 extension. Yet it is today’s key statistics, which study the number of men and women both in and out of work measured by the Labour Force Survey (LFS), which could hold a great sway. The pound is currently trading at €1.158, according to Bloomberg, at the time of writing.
Laura Parsons, currency analyst at TorFX, spoke to Express.co.uk about the potential upturn.
She said: “After a fairly uneventful day the GBP/EUR exchange rate closed out Monday’s European session trading in the region of €1.159.
“As long as we don’t see any surprising Brexit developments today, the pound could be moved by the UK’s latest employment figures.
“Solid average earnings data could be enough to give the pound a little boost.”
Meanwhile the scenario for the Euro could be turned on its head for the worst.
Laura added: “The ZEW economic sentiment surveys, meanwhile, could undermine demand for the euro if they show a decline in sentiment.”
Yesterday, Express.co.uk reported how the pound was under “pressure” at the start of a new week of trading.
It comes after UK Prime Minister, Theresa May, secured an extension for her Brexit divorce deal last week.
Michael Brown, senior analyst at Caxton FX, said of the repercussions of extending the process until October 31, the UK’s new Brexit leave date: “The granting of an extension may support the pound due to the avoidance of an imminent no-deal exit.
“However the deadlock in Westminster over the way forward is likely to cap any rallies unless cross-party talks are more fruitful this week.”
Yet there was some possible news amid Brexit uncertainty.
The euro received a boost thanks to February’s German industrial production rising by a higher-than-forecast 0.7 per cent, helped by a pickup in construction.
In a statement, the German Economy Ministry said: “The industrial sector is expected to remain subdued given the weak development in orders and the gloomier business climate.
“The construction sector remains in a boom. The relatively mild weather contributed to the good result in February.”
It remains to be seen just how much employment, and other non Brexit factors, will affect the strength of the pound today.