The Pound (GBP) tumbled against the majority of its peers yesterday as the UK’s latest employment data failed to impress markets.
Investors were mostly concerned over the UK’s average earnings data, with revealed that wage growth continues to lag well behind inflation, causing workers to be hit by yet another fall in real pay.
Meanwhile the Pound is likely to slump again later this morning with the release of the UK’s latest retail sales figures as economists forecast that sales will have slipped in September.
The Pound Euro (GBP EUR) exchange rate slipped on Tuesday as investors fear that anaemic wage growth in the UK is likely to hamper consumer spending over the coming months.
However the single currency is on shaky ground this morning as markets await a deadline imposed by Madrid for the Catalan government to drop its secession bid, with observers fearing civil unrest in the region if it results in Spain imposing direct rule on the autonomous region.
Sterling also slipped against the US Dollar (USD) yesterday morning following the release of the UK’s latest wage data.
However the ‘Greenback’s gains proved to be short lived as a market shift towards the Euro left the US currency in the lurch.
Meanwhile the US Dollar may dip again this afternoon as economists forecast that the latest Philadelphia Manufacturing Index will have slipped from 23.8 to 22 in October.
The Pound Canadian Dollar (GBP CAD) exchange rate retreated again on Wednesday as the ‘Loonie’ was lifted by rising oil prices.
Brent crude climbed back towards $60 a barrel yesterday as the commodity was strengthened by a larger than expected fall in US stockpiles and the ongoing turmoil near Iraq’s northern oil fields.
After pushing slightly higher against the Australian Dollar (AUD) yesterday Sterling found itself beating a hasty retreat this morning as the ‘Aussie’ was strengthened by stronger than expected employment figures as the jobless fell from 5.6% to 5.5% in September.
New Zealand Dollar
The Pound New Zealand Dollar (GBP NZD) exchange rate skyrocketed overnight on Wednesday, striking a new four-month high as investors reacted to the news that Labour would form a new coalition government with NZ First, nearly four weeks after voters went to the polls.
Markets are always wary of a change in government, but appear to be extremely perturbed by the new coalition which brings together the largely untested Jacinda Ardern of Labour, with the historically unreliable Winston Peters of NZ First.