The Pound Sterling fell to a 1-week trough versus the US Dollar after the latest economic data surprised markets. According to the UK’s Office of National Statistics, the ILO Unemployment Rate unexpectedly jumped to 4.4% for the 3-month period ending in December, above the flat forecast of 4.3%. The ONS also reported that average earnings growth (including bonuses) was flat for the period at 2.5%; without bonuses, the numbers improved unexpectedly to 2.5%, though December’s numbers were revised downward to 2.3%. Analysts don’t believe that those numbers would shift the Bank of England’s “metric” for a May rate hike.
As reported at 11:06 am (GMT) in London, the GBP/USD was trading at $1.3943, down 0.37%; the pair is off the session low of $1.3928, while the peak is at $1.4009. The EUR/GBP is trading at 0.88409 Pence, a gain of 0.26513%; the pair has ranged from a session peak of 0.88478 Pence to a low of 0.88059 Pence.
Carney to Testify on Inflation
What markets are waiting for is to hear from the BoE Governor, Mark Carney, who will be questioned in the UK Parliament over the latest Inflation Report. Governor Carney will be testifying later this afternoon. Also on FX trader’s radar is the latest news on the Brexit talks. Conservative lawmakers have recently petitioned the Prime Minister for a “hard” stance on the Brexit with their demand of a quick and clean separation from the European Union.