Sterling bounces back on better than expected wage data: Reuters

LONDON (Reuters) – Britain’s pound recovered from its lowest levels against the euro in ten months on Wednesday after data showed wages rising faster than expected in the three months to June, closing the gap to headline inflation.

Analysts had called for earnings to rise by as much as 1.8 percent and the 2.1 percent jump, along with a surprise drop in the number of unemployed in July, pushed sterling almost half a cent higher to trade at $1.2893.

That was still just 0.2 percent higher on the day.

Against the euro, it gained 0.3 percent on the day to 90.88 pence, recovering from lows of 91.44 pence which were the pound’s weakest levels since last October’s flash crash.

Britain’s FTSE 100 pared gains slightly after the data boosted the pound, with the index last trading 0.6 percent higher.

Government bond futures fell more than 30 ticks on the day to hit a session low of 127.42, down 24 ticks on the day, while 10-year gilt yields rose by 2 basis points to 1.11 percent.

AUGUST 11, 2017

Writing by Patrick Graham; Additional reporting by Helen Reid and David Milliken; Editing by Saikat Chatterjee

Source: Reuters

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