The pound has rocketed against all the major currencies including both the Euro and the US dollar today after two data releases which came in better than expected as well as a much stronger opinion poll putting the Remain campaign in this EU referendum a good way in front. The UK claimant count came in much lower than expected highlighting a lower level of UK unemployment.
The most interesting release however was average earnings which climbed to 2% from 1.8% the month prior. This particular release is highly important – The Bank of England is particularly concerned with wage growth and this indicator is very closely watched to help decide on monetary policy and ultimately when the bank of England should start to raise interest rates to more normal levels. The market reaction to the numbers saw strong with gains over 1.5% for GBP EUR and with 1.30 very much in sight for this pair. Buyers of Euros are currently looking at a good spike although with many more polls expected in the coming weeks the reverse is equally as likely to be seen.
My view remains that as we approach 23rd June there is likely to be a substantial fall in the price of sterling well before the referendum itself. For anyone selling Euros or selling dollars there could be some better opportunities to move currency ahead of the referendum
If you have an upcoming GBP or EUR currency requirement either buying or selling and would like to be kept up to date with key market movements, or simply wish to compare our award winning exchange rates then please feel free to contact me on 0044 1494 787 478 and ask one of the team for James. Alternatively you can email me directly at email@example.com