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Strong Data Boosts Sterling

Strong Data Boosts Sterling

Sterling rose against both the Euro and Dollar following the release of UK labour market statistics. The data revealed a strong jump in wages and a stronger than expected fall in unemployment with the UK adding 83K jobs in the three months to March, far more than the 5K the market anticipated. The unemployment rate also unexpectedly fell to 3.7% from 3.8%.

The data was stronger than the market expected and will add further pressure on the Bank of England (BoE) to continue raising interest rates.

On the currency front and as we begin Tuesday’s trading, GBP/EUR opens at 1.1845. GBP/USD (Cable) 1.2350 while the EUR/USD pushes higher to just above the 1.24 level.

Data wise and on the docket today a busier macro schedule. Already this morning we have had a raft of UK labour market and unemployment data already referenced above. Later this afternoon, US retail sales and industrial production figures for April are also due. In terms of the central bank diary, ECB President Lagarde is speaking alongside the UK government is planning to amend its post-Brexit trade deal. 

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