Wednesday saw the pound to euro exchange rate rise to 1.1355 but this has now slid back down to 1.1317 according to the latest Bloomberg figures.
It was hoped that rumours of privileged access to the single market post Brexit for the UK would be good news for the GBP/EUR exchange rate.
Laura Parsons, currency analyst for TorFX said: “After rallying on Tuesday the Pound spent Wednesday giving up its recent gains.”
The number of unemployed citizens has increased despite forecasts of an expected rise.
Laura explains that after two years the level of joblessness in the UK has unexpectedly risen from 4.3 per cent to 4.4 per cent.
However, with the health of the Eurozone manufacturing sector also falling short of predictions, the pound’s loss against the euro was reduced.
Unemployment figures cause pound to lose recent gain
Wednesday saw the pound to euro exchange rate rise to 1.1355 but this has now slid back down to 1.13
The pound’s losses against the euro were limited as services and manufacturing PMIs for the Eurozone fell short of forecasts
Earlier in the week reports of negative figures from Germany were set to edge the pound higher.
This could still be the case with a question mark hanging over the economic developments in Germany.
If economic uncertainly continues in Germany, than there is still a chance that the pound could draw back its recent gain.
If economic uncertainly continues in Germany the pound could edge higher
“GBP/EUR could recoup losses – particularly if the UK’s growth data for the fourth quarter surprises to the upside.”
A report on Tuesday advised investors to look ahead at future job and employment data.
Anyone looking to exchange should keep a close eye on the unemployment rate in the UK.