- Pound (GBP) falls after losses last week
- The REC saw wage growth slow to levels last seen in February 2021
- Euro (EUR) roses despite weak German data
- Eurozone retail sales rise by 0.2%
The Pound Euro (GBP/EUR) exchange rate is falling, extending losses from last week. The pair fell -0.26% last week, settling on Friday at €1.1948 and trading in a range between €1.1856 and €1.2032. Today, at 11:15 UTC, GBP/EUR trades -0.29% at €1.1911.
The pound fell further on Monday after industry data showed that the UK jobs market is showing signs of cooling. Data from the Recruitment and Employment Confederation and KPMG showed that the measure of growth in starting pay for hired permanent roles was at its lowest level since February 2021.
Finds of cooling wages in September calm as the Bank of England considers whether to cut interest rates again in the November meeting.
Last week, Bank of England governor Andrew Bailey said the central bank could cut interest rates more aggressively if inflation pressures continue to ease. His comments sent the pound tumbling lower, although a more cautious-sounding Huw Pill stemmed losses.
Huw Pill, the Bank of England’s chief economist, adopted a more cautious tone on Friday, saying that he preferred a gradual approach to cutting rates.
The euro is rising against the # but falling against The US dollar after week data from Germany raises concerns over the growth outlook in the eurozone’s largest economy.
German factory orders fell sharply in August, dropping by the steepest amount in seven months, adding to further evidence of a slowdown in the eurozone’s largest economy. After two straight months of increases, German factory orders declined 5.8% month on month in August. There are now growing fears that the German economy could fall back into recession.
Meanwhile, eurozone retail sales were slightly more encouraging, rising 0.2% month on month in line with forecasts as consumers benefit from cooling inflation and falling interest rates.
