How come the GBP is plunging against the euro at the same time UK publishes supposedly amazing employment statistics?
source: Pound Euro Exchange Rate Hits New Lows on Wednesday
Despite the unexpectedly strong UK unemployment rate figure on Wednesday, the Pound was unable to benefit due to concerns about slowing wage growth and rising inflation in Britain. 
As a result, the strong Euro was easily able to push the Pound Euro exchange rate down to its lowest level since March, 1.1600.
Wednesday’s Eurozone data helped the shared currency remain firm on top of the increased Euro optimism this week.
Eurozone inflation improved from 1.5% to 1.9% year-on-year as expected, according to the final April inflation report. Italy’s trade balance beat expectations, rising to a surplus of €5.42b.
Thursday’s UK retail sales data is likely to be influential to the Pound, but may not be enough to help the pair recover this week’s losses.
Wednesday’s UK data was unable to increase Pound demand notably. While the Pound Euro exchange rate recovered slightly from its worst weekly levels, it remained in the region of 1.16 and over a cent below the week’s opening levels.
Despite news that UK unemployment had hit its lowest level in over 40 years in March, investors remained concerned due to news that wage growth was slowing.
Wages excluding bonuses were predicted to remain at 2.2%, but they unexpectedly slowed to 2.1%. This increased market concerns that Britain’s economic activity could slow in 2017 due to a consumer pay squeeze.
Sterling slumped on Tuesday as the day’s UK inflation stats failed to impress. This made it easy pickings for a strengthening Euro, which has benefitted from increased market confidence in Eurozone stability since the inauguration of new French President Emmanuel Macron
The Pound Euro exchange has lost over a cent since markets opened at the level of 1.1790 this week. On Tuesday, GBP EUR hit a low of 1.1638 – its worst levels since the end of March.
As a result, the strong Euro was easily able to push the Pound Euro exchange rate down to its lowest level since March, 1.1600.
Wednesday’s Eurozone data helped the shared currency remain firm on top of the increased Euro optimism this week.
Eurozone inflation improved from 1.5% to 1.9% year-on-year as expected, according to the final April inflation report. Italy’s trade balance beat expectations, rising to a surplus of €5.42b.
Thursday’s UK retail sales data is likely to be influential to the Pound, but may not be enough to help the pair recover this week’s losses.
Wednesday’s UK data was unable to increase Pound demand notably. While the Pound Euro exchange rate recovered slightly from its worst weekly levels, it remained in the region of 1.16 and over a cent below the week’s opening levels.
Despite news that UK unemployment had hit its lowest level in over 40 years in March, investors remained concerned due to news that wage growth was slowing.
Wages excluding bonuses were predicted to remain at 2.2%, but they unexpectedly slowed to 2.1%. This increased market concerns that Britain’s economic activity could slow in 2017 due to a consumer pay squeeze.
Sterling slumped on Tuesday as the day’s UK inflation stats failed to impress. This made it easy pickings for a strengthening Euro, which has benefitted from increased market confidence in Eurozone stability since the inauguration of new French President Emmanuel Macron
The Pound Euro exchange has lost over a cent since markets opened at the level of 1.1790 this week. On Tuesday, GBP EUR hit a low of 1.1638 – its worst levels since the end of March.
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