The British pound experienced a notable surge, reaching a three-week high of $1.355. This upward movement was primarily driven by better-than-anticipated UK labour data, specifically smaller job losses than forecast. While unemployment remained steady, wage growth, although slightly eased, continued to exceed the Bank of England’s inflation target. The Bank of England’s policy decisions, combined with global factors, contributed to the market’s dynamic environment.
- The British pound rose to $1.355, a three-week high.
- Job losses in July were lower than expected (8,000 vs. forecast of 20,000).
- Unemployment remained at 4.7%.
- Private-sector wage growth eased slightly to 4.8%, still above the BoE’s 2% inflation target.
- Investors are awaiting Q2 GDP data, expected to show 0.1% growth.
- A US–China tariff pause was extended 90 days.
- A US–Russia meeting on Ukraine is scheduled for Friday.
The asset’s recent performance suggests a degree of resilience, supported by positive developments in the labor market despite economic headwinds. The stability in employment and persistent wage pressures present a complex challenge for monetary policy. Investors will likely keep a close watch on upcoming economic releases and geopolitical developments for further indications of the asset’s future trajectory.