👀 Ones to watch: Undervalued stocks to buy before they report Q3 earningsSee Undervalued Stocks

Pound Sterling Jumps vs Euro and Dollar as UK Unemployment Rate Declines

Published 13/08/2024, 12:00
Pound Sterling Jumps vs Euro and Dollar as UK Unemployment Rate Declines
GBP/USD
-
EUR/GBP
-

ExchangeRates.org.uk - The latest UK labour-market data was notably mixed, but a lower unemployment rate and stronger-than-expected underlying wage increases grabbed the headlines.

The Pound to Dollar (GBP/USD) exchange rate hit a 1-week high just above 1.2800 with the Pound to Euro (GBP/EUR) exchange rate also at a 1-week around 1.1700.

According to the latest ONS data, the UK unemployment rate declined to 4.2% in the three months to June from 4.2% previously and below consensus forecasts of 4.5%. The number of people on payrolls increased 24,000 for July after a 14,000 gain for June.

There was a large increase in the claimant count due to technical changes while vacancies continued to decline. Headline average earnings growth slowed sharply to 4.5% from 5.7% previously. This figure was distorted by base effects as NHS bonuses last year came out of the calculation.

There was a slowdown in underlying wages growth to 5.4% from an upwardly-revised 5.8% previously and the lowest reading for two years, but well above market expectations of 4.6%. Private-sector wages growth slowed to 5.2% from 5.6%. This was a notably mixed set of data, but the Bank of England will be wary over evidence of a tight labour market. At the margin, this will make a further near-term interest rate cut less likely.

This content was originally published on ExchangeRates.org.uk

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.