2023-10-17 11:13:08
The pound sterling suffered on Tuesday from indicators describing a less tight labor market, which might persuade the Bank of England to maintain its key rate while the Israeli shekel reached a new low.
Around 09:30 GMT (11:30 a.m. Brussels time), the British currency fell by 0.44% once morest the greenback, to 1.2163 dollars, and lost 0.34% once morest the euro at 86.73 pence.
“Signs that wage growth is running out of steam should persuade the MPC (the Monetary Policy Committee) to maintain the key rate once more at 5.25% next month,” said Samuel Tombs, analyst at Pantheon MacroEconomics. .
This makes the pound’s earnings prospects less attractive for investors than those of the dollar, while the Federal Reserve has hinted that it might raise its key rates once more by the end of the year.
Wage growth reached 7.8% between June and August in the United Kingdom, while the number of job vacancies continues to decline, to 988,000 for July to September, or 43,000 fewer people than in the second quarter.
Wage growth is one of the factors scrutinized by the Bank of England (BoE) for its monetary policy and in its fight once morest soaring prices. The BoE is targeting inflation at 2%, compared to 6.7% in August.
The dollar benefits from a macroeconomic context which “remains favorable”, and “continues to surprise on the rise”, assured UBS analysts.
The shekel continued to suffer from the conflict between Israel and Hamas: the Israeli currency stabilized on Tuesday around 9:30 a.m. GMT (11:30 a.m. Brussels time) at 4.0128 shekels per dollar, following falling earlier in the session to 4 .0329 shekels to the dollar, a new low in eight and a half years.
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