British Pound Rallies on Upbeat UK Wages Data Amid Brexit Hopes

The  Sterling pound today rallied higher against the  US dollar following the  release of  upbeat UK wages data in  the  early European session. The  pound was also boosted by  investor hopes of  another Brexit referendum after the  Labour Party introduced a  motion to  back the  same in  Parliament.
The  GBP/USD currency pair today rallied from a  low of  1.2855 to  a  high of  1.2927 after the  positive wages report.
The  currency pair’s latest rally was driven by  the  upbeat UK labour market report for  January whose prints beat expectations. According to  the  Office for  National Statistics, average weekly earnings met expectations by  coming in  at  3.3% in  the  three months to  November. Furthermore, weekly earnings including bonuses beat expectations by  coming in  at  3.4% versus the  expected 3.3% print. The  ILO unemployment rate came in  at  4.0% showing a  0.1% drop, while the  change in  jobless claims was slightly higher than expected. The  pair was also boosted by  positive Brexit developments, which had investors hoping for  a  second Brexit referendum that would keep the  UK in  the  EU.
Investors are hoping that Theresa May‘s Plan B would have room for  changes that include delaying Article 50, a  permanent customs union, or  the  elimination of  the  no deal option. The  pair was also affected by  the  strong US dollar, which was boosted by  investor fears of  a  global economic slowdown.
The  cable’s short-term performance will continue to  be influenced by  Brexit developments and  investor sentiment towards the  UK.
The  GBP/USD currency pair was trading at  1.2895 as  at  11:52 GMT having dropped from a high of  1.2927. The  GBP/JPY currency pair was trading at  141.07 having dropped from a  high of  141.54.

If you have any questions, comments or opinions regarding the Great Britain Pound,
feel free to post them using the commentary form below.