- Pound rallies but the focus stays on rising inflation
- GBP to EUR secures the third day of gains
- UK wage growth adjusted to inflation fell by a record 3%
- UK investors eyeing CPI inflation rate
- UK inflation rate at 40 years high
The Pound Euro (GBP/EUR) exchange rate is on track to secure 4 days of gains as it completely erased last week’s losses. The pair rose by +0.25% in the previous session settling on Tuesday at €1.1894, after trading in a range between €1.1848 – €1.1897.
At 05:50 UTC, GBP/EUR trades +0.12% at €1.1908.
In the United Kingdom, the labor market cools as real wedges declined at the fastest rate on record. The Office for National Statistics’ Labor Force Survey showed on Tuesday, that UK wages including bonuses were up 5.1% from an upwardly revised 6.4%.
Also, wage growth excluding bonuses was up 4.7% compared to an upwardly revised 4.4% in the previous three months. At the same time, the jobless rate was flat at 3.8% as people claiming jobless benefits 10,500 in July.
Meanwhile, the ZEW survey for the Eurozone and in particular in Germany revealed that market experts continue to anticipate weak economic growth.
Looking forward, based on the market expectation, inflation in the UK as measured by the Consumer Price Index (CPI) is expected to reach 9.8% in July after it rises to a 40-year high of 9.4% in June.