Average earnings alongside France provide a boost for the pound

Pound to euro Awaits ECB Rate Decision for the Next Path

The pound received a well needed boost today as UK average earnings numbers had risen at their fastest pace in 10 years. The figure for the last 3 months was 3.1% and 0.6 above inflation, which indicates that the Great British public have more money in their pockets now compared to 3 months ago.

In other news reports, it emerged today that Emmanual Macron is prepared to offer a compromise at the EU summit tomorrow in regards to the Irish border which could help to move the Brexit talks along.  At the moment the UK and EU cannot come to an agreement as the UK want the backstop agreement to be temporary and a date to be finalised.

In other news it appears that Theresa May’s meeting with the cabinet went well today. We haven’t had any reports suggesting MPs could be resigning in the upcoming days which will give confidence to the Prime Minister, as it didn’t look this way after the weekends events.

All eyes now turn to the EU summit tomorrow. The Prime Minister will address the EU and outline the UKs proposal. The support from Macron will help however she needs to get Donald Tusk and Emmanual Macron on side. The bad news is that Mr Tusk spoke this afternoon and said “unfortunately, the report on the state of the negotiations that I got from Michel Barnier today as well as yesterday’s debate in the House of Commons give me no grounds for optimism”.

For clients that are converting GBPEUR in the upcoming months, the next 6 weeks is going to have a major impact on exchange rates and I am expecting major market movement. If you are making a transfer I would strongly recommend outlining your requirements and together we will devise a strategy that works for you.

If you’d like to discuss the factors likely to impact euro exchange rates in the coming weeks, feel free to use the form below. I’ll be happy to get in touch personally.