Pound Sterling Price News and Forecast: GBP outperforms on robust UK wage growth

Pound Sterling outperforms on robust UK wage growth

The Pound Sterling (GBP) rises sharply against its major peers on Tuesday after the release of the United Kingdom (UK) labor market data for three months ending October. The British currency strengthens as Average Earnings Excluding bonuses, a key measure of wage growth, rose at a robust pace of 5.2%, faster than estimates of 5% and accelerating from the former 4.9% advance.

Bank of England (BoE) officials closely track wage growth data when deciding on interest rates as it is a major driving force to inflationary pressures in the UK service sector. Read more…

GBP/USD Forecast: Pound Sterling shows signs of life but upside remains capped

Following the sharp decline seen in the second half of the previous week, GBP/USD staged a correction and closed in positive territory on Monday. The pair holds its ground and trades at around 1.2700 in the European session on Tuesday.

Early Tuesday, the data published by the UK’s Office for National Statistics (ONS) showed that the ILO Unemployment Rate held steady at 4.3% in the three months to October, as expected. In this period, Employment Change was up by 173,000, while annual wage inflation, as measured by the Average Earnings Excluding Bonus, rose to 5.2% from 4.9%. Read more…