Focus Still on Pound Sterling Today as Employment and Earnings Data Ahead 

Pound Sterling is in focus once again in mid-week trade as it falls back from recent highs.

While the political agenda is likely to subside in importance for the UK currency now that speculation over what Brexit will look like has been addressed, data is back in focus.

Wednesday January 18 brings with it the release of employment and earnings data.

At 09:30 GMT the ONS releases average earnings data, and we are looking for the index to rise to 2.6% from 2.5% previously.

The claimant count – those looking for work – is expected to rise to 5K, last month it rose by 2.4K.

The unemployment rate is expected to be at 4.8%.

“We also expect a second consecutive month of falling employment on a 3m/3m change basis (-6k last time; cons -35K), as a very buoyant June to August period is the marker against which the August to October outturn will be compared,” says Elsa Lignos at RBC Capital Markets.

If correct we could see Sterling consolidate its recent gains.

The focus this morning is likely to remain on the pound as it processes the UK jobs data,” says Connor Campbell at Spreadex, a financial spread-betting provider based in London. “If accurate these figures probably aren’t enough to inspire another round of remarkable growth for the pound, though it could ease its current losses.”

Inflation numbers released on Tuesday were seen to be stronger than anaysts had expected and this boosted Sterling ahead of Theresa May’s important speech which lit a fire underneath the Pound.

Indeed, there is now talk of a Bank of England interest rate rise in the future.

Remember, whenever interest rate rises come into the equation it is typically positive for a currency.

Source: PoundSterling

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