Sterling pared losses after U.K. jobs data showed basic wage growth accelerated in the three months to March and the jobless rate stayed at a 43-year low.
This will help strengthen faith in an August rate hike, with markets now pricing more than 50% odds versus ~47% yesterday.
It’s perhaps unsurprising the jobs market looks resilient. As Bloomberg Intelligence economists pointed out, when faced with a slowdown in demand, U.K. companies tend to adjust how they use resources rather than immediately cutting the workforce if they believe the slowdown is a blip.
Source: Bloomberg Pro Terminal
Trader Georgi Bozhidarov