The pound has improved against the euro according to Bloomberg figures.

It is currently trading at €1.138, an improvement from yesterday’s exchange rate of €1.135.

New UK data released by the Office for National Statistics has shown that UK employment figures hit a new high of 75.6 per cent, with over 32 million people in work.

Unemployment has fallen to just 4.2 per cent which is down 0.4 per cent since last year.

Despite this, wage growth in the county has struggled and remains just above inflation.

It’s a great British success story with businesses from Exeter to Edinburgh creating jobs

Esther McVey

Esther McVey, Secretary of State for Work and Pensions, said of the positive UK employment data: “It’s a great British success story with businesses from Exeter to Edinburgh creating jobs – helping, on average 1,000 people find a job each and every day since 2010.

“With the increase in the personal tax allowance, this government has ensured that people are keeping more of their money before they begin paying tax – meaning more take-home pay, that’s more money in your pocket for you and your family.”

An increase in personal tax and the National Living Wage for full-time minimum wage earnings means taxpayers have had an annual increase of £2,000 since 2016, according to gov.uk.

The positive data was offset by the slowing of wage growth in the UK, which remains just above inflation.

Pay growth fell from 2.6 per cent to 2.5 per cent year on year.

UK exchange rate pound to euro

UK exchange rate: The pound has improved against the euro

UK exchange rate pound to euro

UK exchange rate: The pound opened at €1.138 this morning according to Bloomberg

Laura Parsons, currency analyst at TorFX, commented on the movement of the pound today.

She explained: “Poor data from the Eurozone gave the GBP/EUR exchange rate a reprieve on Tuesday, with the pairing climbing 0.3 per cent on the back of a significant slide in confidence in the currency bloc.

“The pound managed to hold its own against the euro despite the latest UK job stats showing a decline in wage growth, and if today’s inflation report shows a surprise uptick in consumer price pressures we might just see Sterling extend its mini rally today.”

Basic earnings rose just 2.8 per cent, whilst total pay rose 2.5 per cent.

Households could feel the pinch if wage growth fails to improve further against inflation.

UK exchange rate pound to euro

UK exchange rate: Employment hits a high while wage growth has slowed

UK exchange rate pound to euro

UK exchange rate: The pound could improve against the euro later this week

Ms Parsons also explained how the pound could later be affected against the euro: “Conversely, as a dip in inflation would reduce the odds of the Bank of England (BoE) increasing interest rates in August, a disappointing result would deplete demand for the pound.”

An increase in interest rates in the UK were thought to be on the horizon this summer, although this is less likely since the latest data.

The UK inflation rate is currently at 0.5 per cent, with the increase to 0.75 per cent rumoured for August.

It was recently increased from 0.25 per cent to 0.5 per cent in November 2017.

The increase was the first in over a decade.

post source

Leave a your comments