The pound has held onto its strength against the euro and the dollar, despite the ongoing political turmoil in Downing Street. Yesterday, the Conservative MP for Wycombe said that his constituents are around “60 to 1” against the Prime Minister following further reports of illegal gatherings at Downing Street during lockdown.
This morning, sterling has been underpinned by some positive labour market figures. The figures reveal that the unemployment rate dropped in November following the end of the furlough scheme. The redundancy rate also fell to a record low. Despite this, wage growth also fell below inflation in November.
The dollar is strong against the euro this morning due to rising yields supporting the greenback. Later today, the euro could be impacted by the release of sentiment figures, which show how optimistic analysts are about economic growth over the next 6 months.
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