Pound Sterling Price News and Forecast: GBP outperforms on robust UK wage growth

FXStreet Team FXStreet

Pound Sterling outperforms on robust UK wage growth

The Pound Sterling (GBP) rises sharply against its major peers on Tuesday after the release of the United Kingdom (UK) labor market data for three months ending October. The British currency strengthens as Average Earnings Excluding bonuses, a key measure of wage growth, rose at a robust pace of 5.2%, faster than estimates of 5% and accelerating from the former 4.9% advance.

Bank of England (BoE) officials closely track wage growth data when deciding on interest rates as it is a major driving force to inflationary pressures in the UK service sector. Read more...

GBP/USD Forecast: Pound Sterling shows signs of life but upside remains capped

Following the sharp decline seen in the second half of the previous week, GBP/USD staged a correction and closed in positive territory on Monday. The pair holds its ground and trades at around 1.2700 in the European session on Tuesday.

Early Tuesday, the data published by the UK's Office for National Statistics (ONS) showed that the ILO Unemployment Rate held steady at 4.3% in the three months to October, as expected. In this period, Employment Change was up by 173,000, while annual wage inflation, as measured by the Average Earnings Excluding Bonus, rose to 5.2% from 4.9%. Read more...

Author

FXStreet Team

FXStreet

Composed of a group of economic journalists and FX experts, the FXStreet content team produces and oversees all content published on FXStreet. It provides a purely journalistic approach to the Forex market.

AUD/USD holds above 0.7000 ahead of FOMC policy meeting

AUD/USD attracts some dip-buyers near 0.7000 during the Asian session on Tuesday, stalling the previous day's pullback from a one-month high as bets for a November RBA rate hike continue to act as a tailwind for the Aussie. Meanwhile, the US Dollar consolidates gains from the past two days ahead of the crucial two-day FOMC meeting starting later today, further supporting the currency pair.

USD/JPY consolidates above 157.50 as traders await Fed, BoJ meetings

USD/JPY trades above mid-157.00s during the Asian session on Tuesday, looking to build on its recovery from an over one-month low as speculation that the BoJ may hold off on aggressive rate hikes undermines the Japanese Yen. Meanwhile, the US Dollar sits near a one-week high, further supporting the currency pair. Bulls, however, seem hesitant ahead of Wednesday’s FOMC decision and the BoJ policy update on Friday.

Gold trades above $4,000 and a three-month low as focus remains on FOMC

Gold attracts fresh sellers during the Asian session on Tuesday, reversing part of the previous day's modest recovery from a three-month low. US bond yields rebound slightly after the recent decline to a three-week low, helping the US Dollar preserve its gains recorded over the past two days and weighing on the non-yielding bullion. The commodity, however, holds above $4,000 as bears seem hesitant ahead of Wednesday’s FOMC rate decision.

Bitcoin faces $77,000 support test as Fed decision nears

Bitcoin (BTC) is testing key support levels after falling to $79,250 over the weekend, with persistent selling pressure and uncertainty over the Federal Reserve’s (Fed) interest rate decision likely to prolong the top crypto's decline, according to Bitfinex analysts.

Everyone's bracing for a hawkish central bank week. Here's why the surprise could be dovish

Five of the world's major central banks are preparing to announce monetary policy decisions this week, with investors increasingly anticipating higher interest rates as the global energy shock continues to push inflation above target.

What November 3 means for the Fed's rate path and the US Dollar

The USD faces a decisive period ahead of the November 3 midterm elections. While markets anticipate another interest rate increase from the Fed in December, the battle for control of Congress could reshape fiscal policy expectations and, indirectly, the path of US monetary policy in 2027.