P-O Life receives a small commission from Currencies Direct when readers use them for their money exchange. This goes towards maintenance and upkeep of the site, not on beer and wine as those who know me might suspect! 🙂 Thanks for your support.

Sterling is back on the offensive 

The pound remained buoyant on Tuesday but struggled to find meaningful gains on the back of some mixed employment figures.

Sterling is back on the offensive this morning however, with GBP/EUR climbing to €1.1654 and GBP/USD rallying to $1.4166. GBP/CAD and GBP/AUD are buoyed at C$1.7821 and AU$1.7905, respectively, while GBP/NZD is muted at NZ$1.9212.

Looking ahead, we suspect GBP exchange rates will continue to appreciate today as the outlook for the UK economy becomes increasingly bright.

What’s been happening?

The pound continued to firm yesterday, but failed to match the pace seen in recent sessions as GBP investors responded to the UK’s latest jobs report.

Data published by the Office for National Statistics (ONS) revealed the UK’s unemployment rose to 5.1% in December, with the massive loss of jobs in the hospitality sector driving the jobless rate to its highest levels since 2016.

However, the accompanying earning figures were much more positive, with the 4.7% surge in wage growth offering modest gains to Sterling.

The US dollar, meanwhile, trended lower on the back of comments by Federal Reserve Chair Jerome Powell as he testified before Congress.

Powell noted that while the economic outlook has brightened, the US remains a long way from achieving its inflation and employment goals, whilst also stating the Fed will not tighten monetary policy solely in response to a strong job market.

At the same time, the euro struggled to find support on Tuesday as the EU’s ongoing struggle to accelerate its vaccine rollout stoked concerns over the Eurozone’s economic recovery this year.

What’s coming up?

Kicking off today’s session was the publication of Germany’s latest GDP figures, which may offer some support to the euro this morning after domestic growth was revised up to 0.3% in the last quarter of 2020.

In the UK, the focus is likely to return to domestic coronavirus statistics. Boris Johnson has stressed that progressing through to each stage of the government’s lockdown easing plans will require infection levels to continue falling, so expect the pound to remain supported as long as the positive trends continue.

Meanwhile, across the pond, Powell’s testimony will enter its second day, but is unlikely to provide any fresh impetus for the US dollar. Instead, USD investors will be focused on US stimulus developments amidst hopes that President Biden’s $1.9 trillion package could be passed by the end of the week

We’re here to talk currency whenever you need us, so get in touch if you want to know more about the latest news or how it could impact your currency transfers.



Selling Your Property in France?

One key benefit for those who are selling and moving away from France is that Currencies Direct holds a euro account here in France. This makes life so much easier for anyone selling! You register with Currencies Direct, receive your CD account number and the RIB for their Paris based Euro account, which you pass on to your Notaire as your instruction for onforwarding of sale proceeds.

Currencies Direct receive the euros, convert at the agreed exchange rate and forward on to their destination bank account – wherever they are in the world. Simple, easy and very efficient…

Currencies Direct cite the example of a lady who has recently moved back to the UK – her funds are stuck in her French bank account who are insisting that she visits the branch in person to close her account but she is unwell and unable to travel.

Leave a Comment