Sterling is mostly higher today in Forex trading, thanks in large part to the latest, better than expected, economic data. Unemployment data surprised everyone and wage growth remains strong, prompting hopes that the UK economy will pick up and the BOE will tighten monetary policy.
Many analysts had expected unemployment figures in the United Kingdom to worsen, but instead unemployment fell to its lowest rate since the middle of 2008. The Office for National Statistics reports that the jobless rate fell from 5.5 per cent to 5.4 per cent between June and August.
On top of that, wage growth is on the rise as well. This is the strongest wage growth seen by Britons since before the global financial crisis in 2008.
As a result of this news, many expect that the UK economy will have to pick up the pace. After all, with lower unemployment and higher wages, some expect increased consumer spending. Inflation still remains a problem, but if the economy picks up, the Bank of England might be more inclined to tighten monetary policy. This is only helping the sterling against its major counterparts.
At 14:50 GMT GBP/USD is up to 1.5429 from the open at 1.5248. EUR/GBP is down to 0.7404 from the open at 0.7463. GBP/JPY is up to 184.3040 from the open at 182.5870.
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