Yahoo Finance Sterling Climbs on Strong UK Jobs Data
By Peter Nurse
Investing.com - Sterling climbed Tuesday after strong employment data painted a healthier picture of the U.K. economy just as the Bank of England prepares to debate a possible interest rate cut.
At 5:10 AM ET (1010 GMT), GBP/USD traded at $1.3047, up 0.3%, while EUR/GBP stood at 0.8507, down 0.2%.
Official data published on Tuesday showed the number of people in employment rose by 208,000 to 32.90 million in the three months to November, the biggest increase since the three months to January 2019. The employment rate hit a record high of 76.3%, while the unemployment rate of 3.8% remained at its lowest level since early 1975.
A number of members of the Bank of England’s Monetary Policy Committee, including Governor Mark Carney, have spoken recently about the need for more stimulus amid signs of a slowing economy. Indeed, two members voted for a cut to borrowing costs at the end of last year.
The BoE is due to announce its next rates decision on Jan. 30.
The data may provide some food for thought, but traders still give an almost 100% likelihood of a rate cut by the end of the first half of the year.
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