Pound to euro exchange rate: Sterling RECOVERS after UK data - but could be short-lived
THE POUND to euro exchange rate has recovered following the release of UK data earlier last week, trading at €1.129. This could be short-lived as new inflation data is also to be announced.
Pound euro exchange rate: The pound recovers following UK data release
The pound dropped against the euro last week, as uncertainty continues regarding Brexit negotiations.
Following the resignation of Priti Patel as well as Sir Michael Fallon earlier this month, it also caused concern following the crumbling of Theresa May’s cabinet.
However, it appears that positive UK data has helped the pound to recover, with the exchange rate hitting €1.129.
This follows a slight drop from when the pound reached highs of €1.132 last week.
The UK data shows the industrial output grew at it’s fastest pace in September for the whole year.
The Office for National Statistics (ONS) released figures showing a 0.7 per cent increase in production.
It also showed a narrowing of the UK’s trade deficit in goods and services, another positive outcome.
New data surround the UK’s inflation could also help the exchange rate, depending on the results.
Pound euro exchange rate: The increase follows a fall in the pound last week
Inflation data is expected to show a pressure on household spending once more.
Wage growth has struggled to increase with inflation, with estimates of an increase to 3.1 per cent, up from 3 per cent in September.
Any figures above 3 per cent mean Mark Carney, Governor of the Bank of England, must write to the chancellor to explain why this is.
With the UK’s target of 2 per cent, it isn’t looking positive for the new data release later this week.
Pound euro exchange rate: New inflation data could also affect the pound
GBP/EUR tumbled around 0.7% on Monday as the pound broadly softened in reaction to the latest political jitters in the UK.