Pound Sterling Price News and Forecast: GBP/USD declines as UK average earnings deceletrates
|Pound Sterling declines as UK Average Earnings deceletrates
The Pound Sterling (GBP) exhibits a subdued performance against its major peers in Thursday’s European session. The British currency drops as United Kingdom (UK) Average Earnings data, a key measure of wage growth that fuels inflation in the service sector and has been a major barrier to the Bank of England’s (BoE) confidence for interest rate cuts, decelerated as expectedly.
Annual Average Earnings (Including and Excluding bonuses) rose by 5.7% in the three months ending in May, below the 5.9% and 6%, respectively, from the previous month. Though the wage growth momentum slowed, it is still higher than what is needed to be consistent for achieving price stability. Read more...
GBP/USD Forecast: Buyers get discouraged as Pound Sterling struggles to hold above 1.3000
GBP/USD gathered bullish momentum and set a new 2024-high at 1.3045 on Wednesday. The pair, however, lost its traction early Thursday and declined below 1.3000.
Pound Sterling gathered strength midweek after the UK data showed that services inflation remained sticky in June. Early Thursday, the UK's Office for National Statistics reported that the ILO Unemployment Rate remained unchanged at 4.4% in the three months to May, matching the market expectation. The details of the report showed that the wage inflation, as measured by the change in the Average Earnings Including Bonus, declined to 5.7% from 5.9%. GBP/USD started to edge lower following these figures. Read more...
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