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Forex - Pound edges lower after UK jobs report, BoE ahead

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Investing.com -

Investing.com - The pound edged lower against the dollar on Wednesday after the latest U.K. jobs report showed that wage growth declined in the three months to June, as investors looked ahead to the Bank of England's quarterly inflation report later in the day.

GBP/USD dipped 0.04% to 1.6803 from around 1.6819 ahead of the employment report.

Cable was likely to find support at 1.6755, Tuesday's low and a two-month trough and resistance at 1.6840.

The Office of National Statistics reported that average earnings, excluding bonuses, rose by just 0.6% in the three months to June. Including bonuses, pay packets contracted by 0.2% during the quarter, the first decrease since 2009.

Pay growth is continuing to lag inflation which came in at 1.9% in June. The Bank of England has indicated that concerns over weak wage growth are an important factor in the debate on when to start hiking borrowing costs.

The U.K. unemployment rate fell to 6.4% in the three months to June, in line with forecasts and down from 6.5% in the previous three months.

The claimant count fell by 33,600 last month, the ONS said, ahead of expectations for a decline of 30,000. June's figure was revised to a drop of 39,500 people from a previously reported decline of 36,300.

The BoE was to publish its quarterly inflation report later Wednesday, with investors watching for any hints on the timing of a possible rate hike and indications on the degree of slack remaining in the economy.

Elsewhere, sterling pared back gains against the euro, with EUR/GBP down 0.09% to 0.7944, off lows of 0.7936.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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