financetom
Pound-Dollar
financetom
/
Forex
/
Pound-Dollar
/
Sterling recovers after UK labor data
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
Sterling recovers after UK labor data
Oct 26, 2024 2:21 AM

Odds of BOE rate cut in September recede Markets await UK growth data Sterling rose in European trade on Tuesday against a basket of major rivals, holding its ground above three-week lows against the US dollar following important UK labor data.

The data confirms the resilience of the UK economy, and bolsters expectations the Bank of England will maintain interest rates unchanged at next weeks meeting.

The Price

The GBP/USD rose 0.3% today to $1.3108, with August 21 lows at $1.3058.

The pound fell 0.45% on Monday, the second loss in a row, as the dollar rebounded against most major rivals.

UK Labor Sector

Government data showed the UK economy added 265 thousand new jobs in the three months ending July, passing estimates of 123 thousand easily, while unemployment fell to 4.1% from 4.2%.

The excellent data showcases the strength of the UK labor sector and will likely lead BOE policymakers to maintain interest rates unchanged for an extended duration

UK Rates

Following the data, the odds of a Bank of England interest rate cut in September fell to just 10%, while the odds of such a cut in November were below 50%.

Now traders await important UK monthly growth data on Wednesday to gather more clues.

Analysis

ABN Amros chief forex analyst said the recent UK data showed the persistent inflationary pressures in the economy, with stable wages growth likely posing inflationary risks in the medium term.

The bank expects sterling to outperform both the US dollar and the euro in the short and medium terms.

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Sterling hovers around $1.3 ahead of Bailey's remarks
Sterling hovers around $1.3 ahead of Bailey's remarks
Nov 3, 2024
Sterling climbed in European trade on Tuesday against a basket of major rivals, while recovering from two-month lows against the US dollar, thus hovering around the psychological barrier of $1.3. Now traders await Bank of England Governor Andrew Baileys speech later today, which could provide clues on the future of UK interest rate cuts this year. The Price The GBP/USD...
The GBPUSD price attempts to recover - Forecast today - 25-10-2024
The GBPUSD price attempts to recover - Forecast today - 25-10-2024
Oct 27, 2024
The GBPUSD price fluctuates around 1.2975$ level after the rise that it witnessed in the previous sessions, waiting to rebound bearishly to resume the correctional bearish trend, supported by the negative pressure formed by the EMA50, reminding you that the next target is located at 1.2866$. Holding below 1.3000$ is important to the continuation of the expected decline, as breaching...
The GBPUSD price resumes the decline - Forecast today - 24-10-2024
The GBPUSD price resumes the decline - Forecast today - 24-10-2024
Oct 27, 2024
The GBPUSD price provided clear negative trades yesterday to reach 1.2900$ barrier, reinforcing the expectations of continuing the correctional bearish trend, which targets 1.2866$ as a next station, noting that breaking this level will extend the bearish wave to reach 61.8% Fibonacci correction level around 1.2735$. Therefore, we will continue to suggest the bearish trend for the upcoming period, noting...
Sterling recovers after UK labor data
Sterling recovers after UK labor data
Oct 26, 2024
Odds of BOE rate cut in September recede Markets await UK growth data Sterling rose in European trade on Tuesday against a basket of major rivals, holding its ground above three-week lows against the US dollar following important UK labor data. The data confirms the resilience of the UK economy, and bolsters expectations the Bank of England will maintain interest...
Copyright 2023-2024 - www.financetom.com All Rights Reserved