Euro Pound Exchange Rate Struggling to Keep Advancing despite Mixed UK Job Report
Today’s UK job market report was mixed, but the Euro Pound (EUR/GBP) exchange rate is struggling to benefit from Pound (GBP) weakness. Investors are still hesitant to buy the Euro (EUR) too much, despite an improving Eurozone vaccine situation.
Last week saw broadly mixed movement in EUR/GBP. EUR/GBP opened the week at the level of 0.8682 and generally fluctuated around the week’s opening levels.
Towards the end of last week, EUR/GBP briefly jumped to a high of 0.8717. This was the best level for EUR/GBP in around two months, since mid-February. The pair then closed last week at the level of 0.8663.
Since opening this week though, EUR/GBP has so far been trending lower. EUR/GBP is currently trending in the region of 0.8625.
Euro (EUR) Exchange Rates Limited despite Improving Vaccination Outlook
Demand for the Euro remains fairly mixed in recent weeks, as it continues to be driven largely by movement in its biggest rivals the Pound (GBP) and US Dollar (USD).
Analysts note that the Eurozone’s coronavirus vaccination outlook is gradually improving, and that this has yet to be priced into the Euro.
EU Internal Market Commissioner Thierry Breton said there would be enough vaccines for 70% of the Eurozone population by July.
Overall, optimism around the Eurozone’s coronavirus outlook is gradually improving but has yet to have had a big upside impact on the Euro’s movement.
Pound (GBP) Exchange Rates More Jittery as UK Job Market Sees Drop in Workers
Britain’s key unemployment rate unexpectedly improved to 4.9% according to today’s job market report. However, this was due in part to some less optimistic factors, such as a drop in economically active workers.
The report showed around –73k job losses during the data period, and the average wages including bonuses print was also weaker than expected.
Still, despite the mixed job report, optimism persists about Britain’s economic recovery outlook. This is keeping the Pound up against its rival the Euro.
Euro Pound (EUR/GBP) Exchange Rate Awaits European Central Bank, Data
With many more events still on the way in this week’s Eurozone and UK economic calendars, there is likely to be plenty for investors to react to.
Tomorrow will see the publication of Britain’s March inflation rate results. An unexpected surge in UK inflation could cause Bank of England (BoE) tightening speculation to flare up, which may lead to fresh Pound gains.
Thursday will follow with the European Central Bank’s (ECB) April policy decision, possibly one of the most influential events of the week.
If the bank does take a more optimistic stance on the Eurozone economy, it could provide the boost the Euro needs to mount a stronger recovery.
Euro Pound (EUR/GBP) exchange rate investors will also be anticipating Friday’s UK retail sales results, and Markit’s Eurozone and UK PMI projections.
