HiFX comments on the employment data
Andy Scott, associate director of FX advisory services at foreign currency specialists, HiFX, comments on the employment data
“Today’s employment data and Bank of England minutes sent the pound tumbling against the dollar and the euro as they reconfirmed that U.K. rate rises remain some way off into the future. With average earnings slowing from 2.1% to 1.8% and the Bank of England highlighting the potential impact on inflation of the stronger pound, it seems highly unlikely that there will be any rate hikes this year.
“The pound fell by around 1% to 1.3830 against the euro and by a similar amount against the dollar to 1.4670 – its lowest since June 2010. All eyes will now be on the Federal Reserve this evening to see whether the weaker economic data and stronger dollar will lead them to signal a delayed timeframe for the first rate hike which is expected in June.”