The European Central Bank (ECB) recently released data on the Euro area’s negotiated wages for the third quarter of 2024, showing a significant increase in wage growth. In Q3 2024, negotiated wages in the Euro area accelerated at an annual rate of 5.42%, up from a revised 3.54% growth in the previous quarter.
Despite this surge in negotiated wage growth, the Euro did not receive much support in the market. The EUR/USD pair was seen flirting with intraday lows near 1.0550 following the release of the data.
It is important to note that the ECB’s indicator of negotiated wage growth is calculated for a subset of countries within the Euro area. This aggregate includes nine countries: Germany, France, Italy, Spain, the Netherlands, Belgium, Finland, Austria, and Portugal. The data for this indicator is based on negotiated monthly earnings and a mix of monthly and quarterly time series.
In terms of currency performance, the Euro was noted as the weakest against the US Dollar in today’s trading. The table below depicts the percentage change of the Euro against other major currencies:
– USD: +0.34%
– GBP: +0.05%
– JPY: +0.69%
– CAD: +0.11%
– AUD: +0.28%
– NZD: +0.40%
– CHF: +0.35%
It can be observed that the Euro experienced declines against some currencies while making gains against others. This fluctuation in currency values can impact various sectors of the economy and influence trade relationships between countries.
In conclusion, while the Euro area’s negotiated wage growth showed a notable increase in the third quarter of 2024, the market response was mixed. The performance of the Euro against other major currencies also varied, highlighting the dynamic nature of the foreign exchange market and its implications for global trade and economic stability.