Volatility expectations for the Pound Sterling have decreased markedly to 1-year lows after news that the Brexit was approved for a 6-month delay. In the here and now, however, upbeat labor data out of the UK failed to provide any sustainable lift for Sterling. The National Statistics Office reported that annualized total earnings with bonuses, for the 3-month period ending in February, rose to 3.5%, meeting analysts forecasts and matching the high last seen in 2008. The ILO Unemployment rate was flat at 3.9%, as expected, while the Claimant Count Change for March was higher than expected at 28.3K against expectations of a decline to 20.0K; the previous reading was also revised higher to 26.7K.
As reported at 11:50 am (GMT) in London, the GBP/USD was trading lower at $1.3084, down 0.0779%; the pair has ranged from a trough of $1.3073 to a peak of $1.3101 in today's session. The EUR/GBP was trading higher at 0.8628, a gain of 0.116% and off the session peak of 0.86484 Pence while the low was recorded at 0.86253 Pence.
Euro Not Helped by Data
In the Eurozone, some economic data reported earlier today, albeit primarily better than expected, failed to help the Euro up and out of the doldrums. The ZEW Survey for the Eurozone received a reading of 4.5 in April, well above the 1.2% which had been forecast, while Construction output improved both on an annual and month basis, beatings expectations in both cases. The ZEW Surveys for Germany were a mixed bag with the reading for the Current Situation missing the mark at 5.5 in April, while Economic Sentiment was higher than anticipated at 3.1 against 0.8. The EUR/USD was trading lower at $1.129, down 0.0876%.