Currency – The pound declined after the employment report

© Reuters. The pound declined after the employment report – The pound sterling has lost ground against the dollar on Wednesday after the latest jobs report in the United Kingdom has shown that the growth of wages had increased in the three months preceding October.

The GBP / USD was at 1.3346 at 05:22 ET (10h22 GMT), after touching 1.3361 earlier.

The number of people employed has decreased by 56 000 in the three months leading to October, the highest level since mid-2015, reported the Office for National Statistics.

The unemployment rate remained stable at 4.3%, a low of 42 years.

Average earnings, including bonuses, increased by 2.5% over the three months leading to October, up from 2.2% last month. Excluding bonuses, average earnings rose only 2.3%.

Data on Tuesday showed that uk inflation rose to 3.1% in November, and the ONS said that wages in real terms have declined by 0.2% per year.

The pound sterling rose against the euro, with the EUR / GBP was down 0.2% to 0,8799 against 0,8792 earlier.

The index dollar, which measures the greenback’s strength versus a weighted basket based on the trade of six major currencies, edged down 0.06% to 94,00.

The dollar has slightly decreased during the night after democrat Doug Jones has defeated republican Roy Moore in a race bitter for the u.s. Senate in Alabama.

The outcome of the election has further reduced the Senate majority to the republicans, which could make it more difficult for the administration to Trump advance its economic agenda.

Investors await the outcome of the monetary policy meeting to two days of the Fed’s Wednesday and with a rate increase already announced, investors focus on the prospects of inflation expectations and the guidance on rate hikes next year.

The central bank will announce its rate decision at 19: 00 GMT Wednesday, followed by a statement. The chair Janet Yellen will hold a press conference at 19: 30 GMT.

Like this post? Please share to your friends:
Leave a Reply