Euro and UK Pound Gain on the US Dollar

The euro and sterling have appreciated against the US dollar in the past 24 hours, as  both currencies have been presented with favourable conditions, resulting in bull runs against the greenback.

The GBP/USD rate has the pound now buying $1.454 this morning GMT, climbing up from $1.448, yesterday morning the pound was worth $1.44 against the dollar.

Analysts have attributed the recent intervention from US President Barack Obama on the European Union (EU) referendum issue.

Obama firmly believes that the UK should remain inside the bloc, and his influential opinion is seen as a major reason for the pound’s improved performance.

The President’s  assertion that it may take up to ten years to negotiate a fresh trade deal in the event of a ‘Brexit’, is also thought to have put a spoke in the wheel of the leave campaign.

Conversely, in a latest poll conducted by ORB for prominent UK newspaper the Daily Telegraph, support to stay in the EU has fallen by two points to 51%.

Whereas the leave campaign has enjoyed a two point rise in support, leaping up to 43%, still way behind the view that the UK should stay in the EU.

Although neither side of the argument can get to complacent with the outcome of the referendum, as other polls suggest that a fifth of voters are unsure of what the outcome will be on June 23.

Euro Climbs on US Dollar

The euro has started the day aggressively against the US dollar, with the EUR/USD rate leaving the euro buying $1.129, rising from a purchasing just under $1.127 at the beginning of the day CET.

FC Exchange analyst Daniel Wray wrote in his daily round up of the forex market, that despite the slender fall in Germany’s IFO business climate survey, the German economy remains resilient.

The fortunes of Greece are now back on the agenda Wray believes, following unsuccessful meetings amongst euro area members on stopping a default on the Greek’s next default payment.

If this issue remains unresolved, this has the potential to have serious implications for the value of the euro.

Danish Workers Highest Paid in EU

A survey carried out by the German Federal Statistic Office has found that employees in Denmark are paid the highest the EU, earning an average of 42.70 euros per hour throughout 2015.

Belgian workers were the next most affluent on an hourly rate, with an average of 41.10 euros per hour.

Germany were eighth in the survey, as their employers paid an average of 32.70 euros.

The study also found that in the German manufacturing industry, which is subject to the most international competition, the price of one hour worked in Germany amounted to an average 38.00 euros last year.

Employers in the German private sector pain an additional 28 euros of non wage costs per 100 euros of gross earnings, below the EU average of 31 euros.

The highest non-wage costs per 100 euros of wage were paid in Sweden who reimburse 48 euros,.

Next were France on 46 euros, and Belgium 44 euros, the lowest was in Malta on 9 euros.

The main  part of non-wage costs is the employers’ social contributions, which are directed towards statutory social security contributions, expenditure on employee pension schemes, and sickness pay.