Pound Rises After U.K. Employment Data
February 17 2025 - 11:03PM
RTTF2
The British pound strengthened against other major currencies in
the European session on Tuesday, following the release of positive
U.K. employment figures for the three months ending December.
Data from the Office for National Statistics showed that U.K.
unemployment rate remained unchanged in the fourth quarter. The
jobless rate came in at 4.4 percent in three months to December,
the same as in the preceding period. Economists had forecast the
rate to rise to 4.5 percent.
In the three months to December, average earnings excluding
bonus grew at a pace of 5.9 percent annually, in line with
expectations. At the same time, including bonus, earnings advanced
6.0 percent compared to economists' forecast of 5.9 percent.
Data showed that payroll employees for January increased 21,000
from the last month and increased by 49,000 from the previous year
to 30.4 million.
A strong momentum for wage growth would raise inflation
expectations and compel the Bank of England (BOE) to maintain
interest rates at 4.5%.
Meanwhile, the investors weigh the potential impact of higher
U.S. tariffs and look forward to a key meeting on the Ukrainian
conflict, bringing together American and Russian officials.
Saudi is hosting these talks without European leaders and
President Zelenskyy.
Amid much uncertainty over trade and the monetary policy path,
market participants also await further policy signals from Fed
officials.
In the European trading today, the pound rose to more than a
2-week high of 0.8290 against the euro, a 5-day high of 1.1382
against the Swiss franc and a 4-day high of 191.95 against the yen,
from early lows of 0.8309, 1.1364 and 191.11, respectively. If the
pound extends its uptrend, it is likely to find resistance around
0.81 against the euro, 1.14 against the franc and 198.00 against
the yen.
Against the U.S. dollar, the pound edged up to 1.2623 from an
early low of 1.2593. The pound is likely to find resistance around
the 1.28 region.
Looking ahead, Germany's ZEW economic confidence survey results
for February are due to be released at 5:00 am Et in the European
session. The economic sentiment index is expected to rise notably
to 19.9 in February from 10.3 in January.
In the New York session, Canada CPI data for January, U.S. NY
Empire State manufacturing index for February and U.S. NAHB housing
market index for February are slated for release.
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