{"id":4853,"date":"2018-09-06T00:00:00","date_gmt":"2018-09-06T04:00:00","guid":{"rendered":"https:\/\/currencylive.com\/100631-gbp-eur-pound-briefly-hits-high\/"},"modified":"2018-09-06T00:00:00","modified_gmt":"2018-09-06T04:00:00","slug":"100631-gbp-eur-pound-briefly-hits-high","status":"publish","type":"post","link":"https:\/\/currencylive.com\/news\/100631-gbp-eur-pound-briefly-hits-high\/","title":{"rendered":"GBP\/EUR: Pound Briefly Hits 3 Week High vs. Euro"},"content":{"rendered":"<p>Stronger than forecasted data and Brexit optimism sent the pound higher versus the euro, before it slipped back to end Wednesday flat. The pound euro exchange rate hit a peak of \u20ac1.1166, its highest rate in 3 weeks.<\/p>\n<table class=\"table table-bordered\">\n<thead>\n<tr>\n<th><small> What do these figures mean? <\/small><\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td><small> 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.h If the euro amount increases in this pairing, it\u2019s positive for the pound. Or, if you were looking at it the other way around:<em>1 EUR = 0.87271 GBP<\/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. <\/small><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>Sterling received an early boost from solid service sector data. The service sector Purchasing Managers\u2019 Index (PMI) showed that activity in the service sector expanded by more than what analysts had anticipated. The service sector PMI jumped to 54.3 in August, up from 53.5 in July and ahead of the 53.9 than analysts had pencilled in. The solid data was well received following disappointing numbers from the manufacturing and construction sectors earlier in the week.<\/p>\n<table class=\"table table-bordered\">\n<thead>\n<tr>\n<th><small> How does strong jobs data boost the currency? <\/small><\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td><small> 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 goods 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. <\/small><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>The pound also moved sharply higher on Brexit headlines. News that Germany was willing to drop some key Brexit demands sent the pound soaring. Any signs that the UK might be able to agree a Brexit deal sends the pound higher. However, the spike higher was short lived after Germany quickly announced that the reports were simply not true. This quickly wiped away the increased optimism sending the pound back.<\/p>\n<table class=\"table table-bordered\">\n<thead>\n<tr>\n<th><small> Why is a \u201csoft\u201d Brexit better for sterling than a \u201chard\u201d Brexit? <\/small><\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td><small> A soft Brexit implies anything less than UK\u2019s complete withdrawal from the EU. For example, it could mean the UK retains some form of membership to the European Union single market in exchange for some free movement of people, i.e. immigration. This is considered more positive than a \u201chard\u201d Brexit, which is a full severance from the EU. The reason \u201csoft\u201d is considered more pound-friendly is because the economic impact would be lower. If there is less negative impact on the economy, foreign investors will continue to invest in the UK. As investment requires local currency, this increased demand for the pound then boosts its value. <\/small><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>There is no high impacting UK data due for release today. Brexit headlines will remain in focus and drive movement in the pound.<\/p>\n<h2><a href=\"#concerns-over-the-impact-of-trade-war-hit-the-euro\" id=\"concerns-over-the-impact-of-trade-war-hit-the-euro\"><\/a>Concerns Over the Impact of Trade War Hit the Euro<\/h2>\n<p>The euro was broadly able to shrug off disappointing PMI data from Germany, Italy and France, with investors focusing on the marginally better than expected eurozone composite PMI in August. Overall the data painted a less than rosy picture for the health of the eurozone economy and whilst market participants were broadly able to ignore that today, this may not be the case moving forward. The PMI survey showed that business expectation for the year ahead dropped to its lowest level for close to 2 years amid growing concerns over the impact of trade wars and increased political uncertainty. Furthermore, retail sales were also disappointment, failing to reach the 1.3% growth that analysts had forecast.<\/p>\n<p>Today data will remain a central focus for euro traders with German factory orders a highlight. Analysts are expecting factory orders to have rebounded in July after declining in June.<\/p>\n<hr \/>\n<p><small><\/p>\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>Stronger than forecasted data and Brexit optimism sent the pound higher versus the euro, before it slipped back to end Wednesday flat. The pound euro exchange rate hit a peak of \u20ac1.1166, its highest rate in 3 weeks. What do these figures mean? When measuring the value of a pair of currencies, one set equals [&hellip;]<\/p>\n","protected":false},"author":163946597,"featured_media":4854,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1380,1379],"tags":[1395,1394],"class_list":["post-4853","post","type-post","status-publish","format-standard","has-post-thumbnail","category-eur","category-gbp","tag-eur","tag-gbp"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.0 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>GBP\/EUR: Pound Briefly Hits 3 Week High vs. Euro - 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\/100631-gbp-eur-pound-briefly-hits-high\/\" \/>\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\\\/100631-gbp-eur-pound-briefly-hits-high\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/100631-gbp-eur-pound-briefly-hits-high\\\/\"},\"author\":{\"name\":\"Fiona Cincotta\",\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/#\\\/schema\\\/person\\\/8ef0fafb6c93f1204150bb907b42cfec\"},\"headline\":\"GBP\\\/EUR: Pound Briefly Hits 3 Week High vs. Euro\",\"datePublished\":\"2018-09-06T04:00:00+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/100631-gbp-eur-pound-briefly-hits-high\\\/\"},\"wordCount\":838,\"image\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/100631-gbp-eur-pound-briefly-hits-high\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/currencylive.com\\\/news\\\/wp-content\\\/uploads\\\/2019\\\/08\\\/100631-gbp-eur-pound-briefly-hits-high.jpg\",\"keywords\":[\"eur\",\"gbp\"],\"articleSection\":[\"EUR\",\"GBP\"],\"inLanguage\":\"en-US\",\"copyrightYear\":\"2018\",\"copyrightHolder\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/#organization\"}},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/100631-gbp-eur-pound-briefly-hits-high\\\/\",\"url\":\"https:\\\/\\\/currencylive.com\\\/news\\\/100631-gbp-eur-pound-briefly-hits-high\\\/\",\"name\":\"GBP\\\/EUR: Pound Briefly Hits 3 Week High vs. Euro - 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