The pound has failed to improve against the euro with a disappointing week for the UK exchange rate. Brexit concerns and the UK inflation rate increase against lagging wage growth have contributed to the struggling pound.
The exchange rate opened at €1.119 on Wednesday and has failed to make any growth again today.
While Brexit concerns mount on Britons regarding the threat of a no-deal, UK wage growth has also struggled to pick up while UK inflation increased for the first time since November.
New data from the Office for National Statistics has shown that growth is lagging behind inflation, meaning families are feeling the pinch.
Laura Parsons, currency analyst at TorFx, reiterated how the exchange rate is struggling.
She told Express.co.uk: “The pound really is struggling to find much cause for cheer at the moment and the British currency came under renewed pressure on Wednesday on fresh Brexit worries and concerns that UK wage growth is lagging behind inflation.”
UK inflation has risen for the first time since November to 2.5 per cent from 2.4 per cent.
Transport and computer games costs went up, which supported the increase.
Increasing fuel prices also affected the inflation rate rise, which will put a squeeze on UK households.
Inflation is expected to stay above the Bank of England’s target of two per cent for the majority of the year.
Despite this, wage growth slowed down with earnings up by 2.4 per cent, down from 2.5 per cent in May.
Unemployment data was more positive, with rates at their lowest since 1975.
The jobless rate fell to just four per cent according to the ONS.
Ms Parsons said how the pound could recover later this week.
She explained: “We just might see the pound bounce back today however if the UK’s retail sales figures impress.
“That being said, GBP/EUR is unlikely to push much above €1.120 unless consumer spending increases by considerably more than expected.”
While the pound and the euro are struggling, the pound and the Turkish lira are currently strong.
Britons can get double the money when exchanging for lira this year as the economy in Turkey crashes.
US steel tariffs and government spending have affected the lira as it faces the low rates.