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Pound reverses losses after U.K. jobs report

Published 12/07/2017, 10:18
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Investing.com - Sterling reversed losses Wednesday after a strong U.K. employment report for May.
The pound was up 0.05% at $1.2853 at 05:00 ET.
It hit a low of $1.2812 for the session as BoE Deputy Governor Ben Broadbent came out against a rate hike at present.
The British unit also reversed losses against the euro to trade up 0.13% at €1.1219.
The employment report showed a fall in the jobless rate to 4.5%, compared with an estimate of an unchanged 4.6%.
Average earnings plus bonus rose an in-line 1.8%. Ex-bonus, earnings beat estimates.
The claimant count for June showed a figure of 6,000 against an estimate of 10,000.
In remarks to Scottish regional daily the Press and Journal, Broadbent said there are too many “imponderables” surrounding the U.K. economy to justify a hike at present.
Broadbent acknowledged pressures are building for tightening as inflation rises above the BoE's target of 2% and the jobs market remains firm.
Broadbent has been viewed as a potential swing voter within the BoE's Monetary Policy Committee.
At its June meeting, three MPC members voted for a 25 basis point hike in the bank rate which stands at an historic low of 0.25%.
In a speech Tuesday in Aberdeen, Scotland, Broadbent eschewed commenting on interest rates.
The dollar index was off 0.02% at 95.47.

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