The GBPEUR exchange rate was slightly higher on Wednesday morning after German employment data showed a strong performance for May. The German jobs market had its strongest performance in nine years for the month.
The GBP to EUR trades at 1.1583 after the pair surrendered the 1.16 level again.
German Employment Sees Best May in nine Years
German unemployment dropped by 84k in May, lowering the number of unemployed in the country to 2.68 million.
The unemployment rate stayed unchanged at 6.0%, but it was still the lowest unemployment number since April last year, alongside the best German labour market performance for May since 2012.
But before getting too carried away by this encouraging strong labour market performance, don’t forget that since the start of the crisis headline unemployment data has to be taken not only with a pinch but a big spoon of salt. The real impact of the crisis on the labour market can be found in short-time work schemes.
The numbers still showed a lot of the jobs were short-term work and ING bank said:
“Let’s not forget that the labour market is a lagging, not a leading indicator. In this regard, the May improvement is welcome news. With a further reopening of the economy over the summer, the labour market should continue to improve. Even if the high number of short-time workers is a good reminder of potential risks going forward, today’s numbers suggest that the labour market is gradually leaving the crisis behind.”
German Retail Sales Feature on Wednesday
Wednesday will be quiet for data with only German retail sales up for the GBP to EUR.
The UK is now on the brink of hitting the milestone of three-quarters of adults receiving their first Covid vaccination. So far, more than 39 million people have had their first dose, which is 74.9% of all adults.
The news comes after it was reported that the UK saw no new UK Covid deaths for the first time since the pandemic began.
In other news, France’s Foreign Minister has pledged that Paris will use “coercive measures” to ensure the UK adheres to the Brexit fishing rules.
Jean-Yves Le Drian said the UK “unilaterally do not respect” the agreements made by the two sides and signed on December 24th.
The Minister said that fishing licenses in Jersey waters and British waters did not conform to strict criteria within the cooperation agreement.
Mr Le Drain added, “We cannot accept these new manoeuvres and we will continue to defend the rights of our fishermen.” His comments are the latest in post-Brexit tensions between the two sides, despite the long talks required for the Brexit deal.
The GBPEUR started the week on the front foot with a price near 1.1650 and a chance to move towards the 1.17 level, but the euro has taken control again.