Despite the rate of cable (GBP/USD) climbing as a result of US Dollar weakness, the Pound has been slowing softening against the Euro throughout November so far.
Between the middle to late October the Pound remained a good few cents above its current trading levels against the Euro, and even climbed above 1.1650 at one point offering Sterling sellers a good opportunity to make their GBP/EUR currency exchanges.
The climb in the Pound last month was a surprise as Sterling climbed by almost 10-cents from the annual low the GBP/EUR pair traded at in late September, in the fallout from the disastrous mini-budget outlined by former Chancellor Kwasi Kwarteng.
The Pound has since begun a slow decline, beginning at the start of this month with mid-market rates of 1.1350 now being tested., which is a 5-week low.
This week the currency markets are looking forward to the Autumn Statement which is expected to focus on a number of spending cuts and tax rises. The statement carries the capacity to move Sterling exchange rates so it’s worth following if you plan on making a currency exchange involving the Pound.
Wage rise does little to boost the Pound
Some better-than-expected economic data regarding the UK economy this morning has done little to help the Pound recover the recent losses it’s faced against the Euro.
Through July, August and September wage growth increased by an annual rate 5.7% according to The Office for National Statistics (ONS). This is an improvement on the previous figure of 5.4% for the previous 3-months, and the figure released this morning was above the expectation of 5.5%. Despite the positive news the Pound remains down against the Euro, trading around 1.1350 as previously outlined.
Perhaps the muted reaction to the news was due to the unemployment rate climbing to 3.6% during the same timeframe, as the number of people in employment dropped by 52,000.
The Bank of England has predicted that a long lasting, shallow recession is already underway and that unemployment could hit 6.5% during this time so there could be further pressure applied to the Pound if the data released continues to disappoint.
If you wish to discuss an upcoming currency exchange with us you can contact me (Joe) on [email protected] directly. I will be happy to offer you a quote and explain how our service may help you save money when making currency exchanges. We also offer rate alerts to help keep you informed regarding price fluctuations.