Friday 2nd October 2015
The Pound/Euro rate has fallen sharply today, dropping from €1.36 to €1.3450 as you can see from the chart below:
Why has the Pound fallen against the Euro?
It was actually due to data from the United States. At 13:30pm today the USA released their Non-Farm Payrolls data, which shows the number of new jobs created (not including agricultural jobs as they are seasonal, hence the name non-farm). The markets expected 203,000 new jobs, but the actual figure was a dismal 142,000.
Because the number was worse than expected, investors sold the US Dollar and bought the safe haven Euro, causing it to gain strength and become more expensive to buy. This is why GBP/EUR fell sharply at 13:30pm as you can see from the graph above.
You can see the inverse correlation for Sterling/Dollar, which rose as the Dollar weakened:
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Labels: Best Exchange Rates, Non-Farm Payrolls, When to Buy Euros, Why has Pound fallen against Euro
