The Pound had a slight spike in value yesterday morning, following news that unemployment in the U.K had remained at a healthy 4.5% and average earnings had also crept up a little. Average earnings data is one of the key issues that the Bank of England are looking into, as it stands inflation is high at 2.6% yet average earnings (people’s wages) are not following suit.
Essentially what this creates is a problem for the economy as we move forward. If the price of goods and services is rising yet people’s earnings are not rising at the same pace then consumers are going to have less money in their pocket to spend. Less spending means that the economy will slow up and essentially this would be bad news for Sterling exchange rates.
I only feel that it is uncertainty that is holding back the Pound at present, the issue is we may have to wait a while for this to lift but if you look at core economic figures I do feel the Pound is undervalued.
Today we have the release of Retail Sales figures which are due at 09:30am and this will show just how much consumers have dipped into their pockets recently and whether or not they have started to tighten their purse strings.
Tomorrow is fairly quiet for U.K economic data but that is not to say that the pound will not remain fragile as we head to the end of the week.
Should you wish to be made aware of any spikes in the market or should you simply wish to discuss how to ensure you get the very best exchange rate on a pending property purchase or sale, or indeed a business transaction coming up then you are more than welcome to contact me personally.
You can contact me (Daniel Wright) the creator of this site over 7 years ago by emailing me on firstname.lastname@example.org or by calling our trading floor and asking for me on 01494 787 478 and i will be more than happy to speak with you personally.