- Pound (GBP) is rising, adding to last week’s gains
- UK unemployment data is due tomorrow
- Euro (EUR) is falling despite upbeat data
- Greenland worries persist
The Pound-Euro (GBP/EUR) exchange rate is rising adding to last week’s gains. The pair rose 0.28% in the previous week, settling on Friday at €1.1517. It traded between €1.1469 and €1.1571. At 14:30 UTC on Monday, GBP/EUR trades 0.15% higher at €1.1535.
The pound is rising modestly against the euro and strongly against the US dollar as investors weigh another busy start to the week, with the Trump administration threatening Federal Reserve Chairman Jerome Powell with a criminal indictment.
The pound is benefiting from the selloff in the USD, as sentiment toward sterling has improved following the late November Budget. Fiscal and political risk have been reduced following the budget.
While the UK economic calendar is quiet today, things will pick up as the week progresses. Tomorrow, UK unemployment figures are in focus, and after unemployment rose to 5.1% in October, the highest level since the pandemic.
Ahead of tomorrow’s data, the recruitment and employment confederation survey showed that the UK jobs market cooled in December, with hiring falling for the 39th consecutive month, but starting salaries for permanent roles are rising faster.
UK GDP data is also due on Wednesday.
The error is under pressure despite the years, and investor sentiment is improving by more than expected. The Centex investor confidence index rose to -1.8 in January from -6.2 in December last year, beating forecasts of -4.9
This month, the highest reading since July last year, with a modest improvement seen especially in Germany. Centre in Europe’s largest economy improved by 6.3 points, to -16.4.
Attention is also on the Greenland question after Trump expressed plans to assert control over the territory, either diplomatically or by force.
US Secretary of State Marco Rubio is to meet Danish officials about Greenland on Wednesday to discuss a wide range of options for purchasing the Danish territory.
