Forex News: Pound Climbs Amid Strong U.K. Average Earnings Data

Pound Climbs Amid Strong U.K. Average Earnings Data

(RTTNews) - The pound firmed against its major counterparts in the European session on Tuesday, as the nation's wage growth remained strong in the three months to September, pointing to a tight labor market.

Data from the Office for National Statistics showed that average earnings, including bonuses, climbed 7.9 percent in three months to September, higher than expectations of 7.4 percent.

Excluding bonuses, wage growth came in at 7.7 percent annually, in line with estimates.

The unemployment rate remained steady at 4.2 percent. Economists had projected the jobless rate to rise to 4.3 percent.

Investors await the U.S. consumer inflation report due later in the day for clues on the path of interest rates.

The pound firmed to a 5-day high of 1.2307 against the greenback and a 1-week high of 1.1094 against the franc, off its early lows of 1.2261 and 1.1050, respectively. The pound is seen facing resistance around 1.24 against the greenback and 1.13 against the franc.

The pound appreciated to 186.69 against the yen, its highest level since August 22. The pound is likely to face resistance around the 188.00 level.

In contrast, the pound eased to 0.8726 against the euro, from an early 5-day high of 0.8703. The next likely support for the pound is seen around the 0.90 level.

Looking ahead, U.S. CPI data for October is due in the New York session.

For comments and feedback: contact editorial@rttnews.com

Copyright(c) 2023 RTTNews.com. All Rights Reserved

Market News provided by RTTNews