Unexpectedly upbeat employment data helped to push the Pound Sterling higher. According to the National Statistics Office, average earnings, both with and without a bonus, for the three-month period ended August, jumped to 2.7% and 3.1%, respectively, well above the 2.4% and 2.8% that had been forecast. At the same time, the ILO reported that the unemployment rate was steady at 4%, largely as expected, while the claimant count change for September was unexpectedly higher at 18.5K, above the 10.0K expected; the previous figure was also revised higher to 14.2K from 8.7K.
As reported at 11:01 am (BST) in London, the GBP/USD was trading at $1.32, a gain of 0.35% and just off the session peak of $1.3209 while the low was recorded at $1.3141. The EUR/GBP was trading lower at 0.87679 Pence, down 0.40%; the pair has ranged from a trough of 0.87656 Pence to a high of 0.88100 Pence.
Brexit Breakthrough Sought
Worries over the upcoming Brexit negotiations at the EU summit are capping any additional gains for the Pound, however. With only about six months to go before Britain leaves the EU, negotiators are still trying to resolve the issue of the Irish borders. With no firm agreement in sight, some FX traders have begun to unwind their short Pound positions.