Sterling Down as Wage Inflation Falls

The Great Britain pound fell today after the employment report showed that wage inflation decreased, giving Britain’s central bank little incentive to start raising interest rates. There were good news in the report as well, but it hardly affected the sterling.

The data from Office for National Statistics showed that average weekly earnings rose 2.4 percent in the period between August and October of 2015 compared to the same three months a year ago, down from the 3 percent growth in the previous reporting period and missing analysts’ expectations. The number of claims for unemployment benefits rose by 3,900 between October and November, exceeding forecasts. The only piece of good news was the fact that the unemployment rate ticked down from 5.3 percent to 5.2 percent, but that did little to prevent the pound from falling against its major peers.

GBP/USD fell from 1.5035 to 1.5013 as of 13:19 GMT today. EUR/GBP rallied from 0.7263 to 0.7281.

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