Sterling Pound Rallies on Positive Brexit News and UK Jobs Data

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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