Strong Labor Market Report Fails to Move the Pound, Brexit Woes in Focus

The Pound continues to trade below 30-month lows over rising Brexit uncertainties even after the UK reported strong wage growth

Arslan Butt•Wednesday, August 14, 2019•1 min read

The Pound continues to trade below 30-month lows over rising Brexit uncertainties even after the UK reported strong wage growth during the previous day. At the time of writing, GBP/USD is trading at around 1.205.

Earnings rose by 3.7% YoY in Q2 2019, touching the highest levels in 11 years. Despite such a strong performance from UK’s labor market, the Sterling remains under pressure over anticipation of a no-deal Brexit.

This data also does not bode well from economists’ perspective as a strong labor market can convince the Bank of England to hold interest rates steady. Currently, markets are expecting a 68% likelihood that the BOE will cut interest rates by 0.25% by the end of this year.

According to Former Chancellor Philip Hammond, PM Boris Johnson’s unrealistic demands could wreck any possible chance that Britain may have in negotiating a new Brexit deal with the EU. BoJo insists on the removal of the Irish backstop from the current withdrawal agreement, threatening to take Britain out of the EU without a deal if this does not happen.

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies
Open a FREE Trading Account

ABOUT THE AUTHOR See More

Arslan Butt

Index & Commodity Analyst

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.