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Pound Weakened as Wage Growth Remains Sluggish

Categories: AUD, CAD, EUR, GBP, Markets, News, NZD, USD

Sterling

The Pound (GBP) initially tumbled against the majority of its peers on Wednesday as the UK’s latest employment data showed that wage growth continues to lag well behind inflation.

Markets fear that this continued fall in real wages will really start to weigh on the UK’s economic growth over the coming months as consumers cut back spending as finances become tighter.

While Sterling was able to recoup some of its losses by the end of yesterday session GBP Investors will be hoping that today’s retail sales data will provide a much needed boost to the currency.

Euro

The Pound Euro (GBP EUR) exchange rate rallied from a three-week low over the course of the European session yesterday as the single currency struggled to capitalise on the recent uptick in Eurozone data.

While the bloc continues to show stellar growth this year, the upbeat data has been undermined slightly by the European Central Bank’s (ECB) commitment to its loose monetary policy and willingness to may extend its bond-buying programme.

US Dollar

After initially tumbling against the US Dollar (USD) yesterday in the wake of the UK’s lacklustre wage figures Sterling was able to recoup some of its losses and stabilise in the afternoon as investors were left disappointed by the latest US inflation figures.

The latest US CPI figures showed that inflation dipped from 2.2% to 2% in October as expected, denting hopes for further rate hikes from the Federal Reserve next year.

However the ‘Greenback’ was prevented from falling further as US retail sales showed some surprise growth last month.

Canadian Dollar

The Pound Canadian Dollar (GBP CAD) exchange rate stabilised close to its best levels this week overnight on Wednesday as the ‘Loonie’ was weakened by a dip in oil prices.

The pairing may strengthen again later this afternoon with the release of Canada’s latest manufacturing data as economists forecast that sales growth will have slumped from 1.6% to -0.3% in September.

Australian Dollar

After striking close to a two-week high against the Australian Dollar (AUD) yesterday evening the Pound fell back again overnight as the ‘Aussie’ was bolstered by yet another impressive domestic labour report, with unemployment tumbling from 5.5% to 5.4% in October.

New Zealand Dollar

The Pound New Zealand Dollar (GBP NZD) exchange rate rallied by around half a cent on late on Wednesday as the ‘Kiwi’ was weakened by a sell off of commodities and a dip in domestic consumer confidence in November.

TorFX Author: TorFX

“Our company’s mission is to provide outstanding exchange rates, expert guidance and a simple, friendly service that people will want to recommend to others.” – Jon Beddell (CEO). Contact TorFX for an FX Quote – UK & Europe – Australia & NZ.

Please note that the opinions of our authors are their own and do not reflect the opinion of Best Exchange Rates and should not be taken as a reference to buy or sell any financial product. Full Disclaimer

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