Pound Euro Exchange Rate Fluctuates as Rail Strikes Rage on
The Pound Euro (GBP/EUR) exchange rate is trading narrowly this morning as a lack of economic data laves the pairing exposed to external factors. Sweeping industrial action continues to weigh on the UK economy. Meanwhile, the Ukraine conflict concerns EUR investors.
At time of writing the GBP/EUR exchange rate is trading around €1.1305, relatively unchanged from this morning’s opening levels.
Pound (GBP) Undermined by Festive Strike Action
The Pound is struggling for much demand this morning against many of its peers as industrial action continues. Railway workers and Border Force are striking over pay disputes, disrupting travel plans over the festive period.
Post-Christmas travellers are to expect further delays as both railway workers and Border Force staff stage fresh strikes. Major airports across the country are bracing for disruptions as passport control staff walk out over pay disputes. Civil servants have been called in to assist military personnel covering passport control staff at major airports, including Heathrow, Gatwick, and Manchester.
With pressure building on the government to intervene and meet pay demands, Prime Minister Rishi Sunak has reiterated that tackling inflation is more important. Sunak has previously claimed wage demands being ‘unaffordable’, and that pay rises risk fuelling inflation. Sunak added:
‘Part of that is being responsible when it comes to setting public sector pay. In the long term, it’s the right thing for the whole country that we beat inflation.’
Euro (EUR) Wary of Escalating Ukraine Conflict
Meanwhile, the Euro is also failing to muster much demand this morning as a lack of data exposed the single currency to external factors.
The Ukraine conflict rumbles on, and Russia have stepped up their attacks on the liberated city of Kherson. With the US stating they would be supplying Ukraine with Patriot missiles, investors have been wary of the conflict escalating. Putin has since revealed that he is ready to negotiate with Ukraine but has been met with refusals. Putin added:
‘We are ready to negotiate with everyone involved about acceptable solutions, but that is up to them – we are not the ones refusing to negotiate, they are.
‘I believe that we are acting in the right direction, we are defending our national interests, the interests of our citizens, our people. And we have no other choice but to protect our citizens.’
Pound Euro Forecast: UK Industrial Action to Keep Lid on Sterling?
Looking ahead, the Pound Euro exchange rate could struggle to gather much momentum without much economic data this week. The Pound will be left vulnerable to domestic woes as strikes are set to continue.
Meanwhile, Euro investors could be left concerned with headlines out of Ukraine. With Russia ramping up their offensive efforts, peace remains a distant hope, the Euro could slide on escalating geopolitical tensions.