The Sterling pound today rallied higher after the release of positive UK jobs data especially the unexpected increase in wages in the three months to August. The GBP/USD currency pair’s rally was initially triggered by comments from Germany’s Europe minister who stated that the likelihood of a Brexit deal was high.
The GBP/USD currency pair today rallied from a low of 1.3140 in the Asian session to a high of 1.3222 in the mid-European session.
The currency pair opened today’s session threatening to erase some of yesterday’s gains following the rally that closed its opening gap. However, the upbeat comments by Germany’s Europe minister Michael Roth stating that the European Union and the UK were close to a Brexit deal triggered the pound’s initial rally. Roth also stated that the negotiations were going to be painful and that the EU must negotiate in the best interests of its citizens. Furthermore, the release of the latest UK labour market report was also responsible for driving the pair higher.
According to the UK’s Office for National Statistics, the average weekly earnings in the three months to August increased by 2.7%, which was higher than the expected 2.6% growth. The weekly earnings excluding bonuses also beat expectations by recording 3.1% growth versus the expected 2.9% print. The ILO unemployment rate also remained at the four decade low of 4.0% in September.
Brexit headlines and investor sentiment are likely to affect the currency pair’s performance over the short-term.
The GBP/USD currency pair was trading at 1.3218 as at 11:00 GMT having rallied from a low of 1.3140. The GBP/JPY currency pair was trading at 148.06 having risen from a low of 147.09.
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