{"id":3854,"date":"2017-07-13T00:00:00","date_gmt":"2017-07-13T04:00:00","guid":{"rendered":"https:\/\/currencylive.com\/100171-gbp-eur-rally-jobs\/"},"modified":"2017-07-13T00:00:00","modified_gmt":"2017-07-13T04:00:00","slug":"100171-gbp-eur-rally-jobs","status":"publish","type":"post","link":"https:\/\/currencylive.com\/news\/100171-gbp-eur-rally-jobs\/","title":{"rendered":"Pound Rallies Versus the Euro on UK Jobs Data"},"content":{"rendered":"<p>The pound surged against the euro in the previous session, jumping over 100 points following an upbeat UK jobs report and a broad based weakness in the euro. The pound strengthened to a day\u2019s high of \u20ac1.1311 versus the euro from a low of \u20ac1.1178.<\/p>\n<table class=\"table table-bordered\">\n<thead>\n<tr>\n<th>What do these figures mean? <\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>\n<p> 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. <\/p>\n<p> For example, it could be written: <em>1 GBP = 1.13990 EUR<\/em> <\/p>\n<p> <em>Here, \u00a31 is equivalent to approximately \u20ac1.14. This specifically measures the pound\u2019s worth against the euro. If the euro amount increases in this pairing, it\u2019s positive for the pound.<\/em> <\/p>\n<p> Or, if you were looking at it the other way around: <em>1 EUR = 0.87271 GBP<\/em> <\/p>\n<p> <em>In this example, \u20ac1 is equivalent to approximately \u00a30.87. This measures the euro\u2019s worth versus the British pound. If the sterling number gets larger, it\u2019s good news for the euro.<\/em> <\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table class=\"table table-bordered\">\n<p>The UK jobs report impressed investors on many levels. Britain\u2019s unemployment rate unexpectedly dropped to 4.5%, the lowest level in 43 years. Employment levels hit a fresh record high at 74.9% and the jobless claimant count was just 6000, compared to the 10,000 pencilled in by analysts.<\/p>\n<p>The key figure, wages growth, also beat analysts\u2019 forecasts at 2% in the three months to May. This is slightly up on the figure of 1.7% of the previous month and is still significantly lower than inflation, which was 2.9% in May. This data highlights the squeeze being felt by the consumer as crucially the cost of living continues to rise whilst wages decline in real terms.<\/p>\n<p>Wage growth is a lagging indicator and with the other figures in the UK jobs report, such as job creation and unemployment proving to be resilient, there is hope that this could signal a stronger period for wage growth is just around the corner. Following the report the pound rallied across the board.<\/p>\n<table class=\"table table-bordered\">\n<thead>\n<tr>\n<th>How does strong jobs data boost the currency? <\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>It works like this, when there is low unemployment and high job creation, the demand for workers increases. As demand for workers goes up, wages for those workers also go up. Which means the workers are now taking home more money to spend on cars, houses or in the shops. As a result, demand for goods and services also increase, pushing the prices of the good and services higher. That\u2019s also known as inflation. When inflation moves higher, central banks are more likely to raise interest rates, which then pushes the worth of the currency higher. <\/td>\n<\/tr>\n<\/tbody>\n<\/table class=\"table table-bordered\">\n<p>Economic data is in short supply today and tomorrow so the pound could struggle to hang onto gains following the UK jobs report.<\/p>\n<p>Given the quietness on the UK economic calendar, today the news driving the pound-euro exchange rate is likely to come from Europe.<\/p>\n<h2><a href=\"#euro-traders-look-to-german-inflation-data\" name=\"euro-traders-look-to-german-inflation-data\"><\/a>Euro traders look to German inflation data<\/h2>\n<p>The euro has had several strong sessions over the past few weeks and has been one of the best performing currencies, pushing the pound-euro exchange rate to 8 month lows. The previous session saw a general weakness in demand for the common currency, as upside is limited until there is further clarification as to what the European Central Bank will do next. Interest rate expectations have no reason to drop right now, but they are certainty not increasing.<\/p>\n<table class=\"table table-bordered\">\n<thead>\n<tr>\n<th>Why do raised interest rates boost a currency\u2019s value? <\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Interest rates are key to understanding exchange rate movements. Those who have large sums of money to invest want the highest return on their investments. Higher interest rate environments tend to offer higher yields. So, if the interest rate or at least the interest rate expectation of a country is relatively higher compared to another, then it attracts more foreign capital investment. Large corporations and investors need local currency to invest. More local currency used then boosts the demand of that currency, pushing the value higher. <\/td>\n<\/tr>\n<\/tbody>\n<\/table class=\"table table-bordered\">\n<p>Today\u2019s inflation figures from Germany look set to be the central focus for the GBP-EUR exchange rate. Inflation in the eurozone is remaining stubbornly low despite strong economic data across the region. Should inflation in Germany, often considered the powerhouse of Europe, rise more than the 1.6% anticipated,the euro could strengthen again.<\/p>\n<table class=\"table table-bordered\">\n<tbody>\n<tr>\n<td>\n<p><small><em><br \/>\nThis publication is provided for general information purposes only and is not intended to cover every aspect of the topics with which it deals. It is not intended to amount to advice on which you should rely. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content in this publication. The information in this publication does not constitute legal, tax or other professional advice from TransferWise Inc., Currency Live or its affiliates. Prior results do not guarantee a similar outcome. We make no representations, warranties or guarantees, whether express or implied, that the content in the publication is accurate, complete or up to date. Consult our <a href=\"https:\/\/currencylive.com\/risk-warning\/\">risk warning<\/a> page for more details.<\/em><\/small><\/p>\n<p><small><em>This article was initially published on TransferWise.com from the same author. The content at Currency Live is the sole opinion of the authors and in no way reflects the views of TransferWise Inc.<\/em><\/small><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The pound surged against the euro in the previous session, jumping over 100 points following an upbeat UK jobs report and a broad based weakness in the euro. The pound strengthened to a day\u2019s high of \u20ac1.1311 versus the euro from a low of \u20ac1.1178. What do these figures mean? When measuring the value of [&hellip;]<\/p>\n","protected":false},"author":163946597,"featured_media":3855,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1380,1379],"tags":[1395,1394,1388],"class_list":["post-3854","post","type-post","status-publish","format-standard","has-post-thumbnail","category-eur","category-gbp","tag-eur","tag-gbp","tag-jobs-data"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.0 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Pound Rallies Versus the Euro on UK Jobs Data - Currency Live<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/currencylive.com\/news\/100171-gbp-eur-rally-jobs\/\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Fiona Cincotta\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/100171-gbp-eur-rally-jobs\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/100171-gbp-eur-rally-jobs\\\/\"},\"author\":{\"name\":\"Fiona Cincotta\",\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/#\\\/schema\\\/person\\\/8ef0fafb6c93f1204150bb907b42cfec\"},\"headline\":\"Pound Rallies Versus the Euro on UK Jobs Data\",\"datePublished\":\"2017-07-13T04:00:00+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/100171-gbp-eur-rally-jobs\\\/\"},\"wordCount\":868,\"image\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/100171-gbp-eur-rally-jobs\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/currencylive.com\\\/news\\\/wp-content\\\/uploads\\\/2019\\\/08\\\/100171-gbp-eur-rally-jobs.jpg\",\"keywords\":[\"eur\",\"gbp\",\"Jobs Data\"],\"articleSection\":[\"EUR\",\"GBP\"],\"inLanguage\":\"en-US\",\"copyrightYear\":\"2017\",\"copyrightHolder\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/#organization\"}},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/100171-gbp-eur-rally-jobs\\\/\",\"url\":\"https:\\\/\\\/currencylive.com\\\/news\\\/100171-gbp-eur-rally-jobs\\\/\",\"name\":\"Pound Rallies Versus the Euro on UK Jobs Data - 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