GBP/USD: Pound Low vs. Dollar Ahead of US Jobs Report

The pound trended lower versus the euro across the previous session. The pair hit a nadir of €1.1654 on Tuesday, before picking up slightly to close down 0.2% at €1.1671.

The Johnson — Corbyn live televised debate was the central focus for pound traders on Thursday. Whilst both sides claimed victory following the debate, voters backed the PM 51% to Jeremy Corbyn’s 49%. This YouGov snap poll after the debate puts the two leaders on a much more equal footing than the polls across recent weeks, which show that Boris Johnson has a solid 18-point lead.

Boris Johnson’s lead over Jeremy Corbyn has offered support to the pound, helping it rally to a six-month high earlier in the week as investors grow increasingly confident that through a Boris victory the UK will avoid a no deal Brexit.

However, the slight weakness that is starting to show through in the pound could be investors looking beyond Brexit on 31st January, to the trade talks which will take place thereafter. Should the UK leave the EU with a deal, there will be an 11-month transition period when the trade talks with the EU are set to take place. These 11 months could also be a testing time for the pound.

A slight improvement in Confederation of British Industry (CBI) Industrial trends orders index also failed to boost the pound on Tuesday. The CBI index improved to -26 in October, up from -37. The moderate improvement in sentiment was insufficient to lift the pound. Concerns over the health of the UK economy have plagued investors across recent months. Whilst the UK has so far manged to avoid a recession, Brexit uncertainty has dragged on the British economy, so much so that that the dominant service sector has stagnated.

Eurozone Financial Stability Report Eyed

The euro advanced versus the pound is the previous session, despite a surprise decline in eurozone construction output. Construction output in September declined by -0.7% on the year rather than increasing 2.7% s analysts had forecast. The data is not high impacting data, however it still served to cast a how over the health of the eurozone economy. Whilst eurozone economic growth remained resilient in the third quarter, the risk of a fourth quarter slow down remains.

Today investors will look towards the release of the eurozone financial stability report, prior to the minutes from the European Central Bank monetary policy meeting on Thursday.

What do these figures mean?
When measuring the value of a pair of currencies, one set equals 1 unit and the other shows the current equivalent. As the market moves, the amount will vary from minute to minute.

For example, it could be written:

1 GBP = 1.13990 EUR

Here, £1 is equivalent to approximately €1.14. This specifically measures the pound’s worth against the euro. If the euro amount increases in this pairing, it’s positive for the pound.

Or, if you were looking at it the other way around:

1 EUR = 0.87271 GBP

In this example, €1 is equivalent to approximately £0.87. This measures the euro’s worth versus the British pound. If the sterling number gets larger, it’s good news for the euro. is a news site only and not a currency trading platform. is a site operated by TransferWise Inc. (“We”, “Us”), a Delaware Corporation. We do not guarantee that the website will operate in an uninterrupted or error-free manner or is free of viruses or other harmful components. The content on our site is provided for general information only and is not intended as an exhaustive treatment of its subject. We expressly disclaim any contractual or fiduciary relationship with you on the basis of the content of our site, any you may not rely thereon for any purpose. You should consult with qualified professionals or specialists before taking, or refraining from, any action on the basis of the content on our site. Although we make reasonable efforts to update the information on our site, we make no representations, warranties or guarantees, whether express or implied, that the content on our site is accurate, complete or up to date, and DISCLAIM ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. Some of the content posted on this site has been commissioned by Us, but is the work of independent contractors. These contractors are not employees, workers, agents or partners of TransferWise and they do not hold themselves out as one. The information and content posted by these independent contractors have not been verified or approved by Us. The views expressed by these independent contractors on do not represent our views.