EUR/GBP skids to six-month low of 0.8511. Economists at Société Générale analyze the pair’s outlook.
UK wages reinforce BoE caution
The BoE two weeks ago mentioned, like the Fed, it does not have the confidence yet on inflation to cut rates. That won’t change after earnings ex-bonuses slowed in December to 6.2% 3m/YoY, above forecast of 6.0%. November was revised up by 0.1ppt to 6.7%.
Employment rose by 72K. Payrolls, a notoriously volatile data series, expanded by 48K in January. December was revised up to 31K.
For EUR/GBP, a pullback to the 0.8400-0.8500 range becomes a distinct possibility for the first time since 2022.
Disclaimer: The content above represents only the views of the author or guest. It does not represent any views or positions of FOLLOWME and does not mean that FOLLOWME agrees with its statement or description, nor does it constitute any investment advice. For all actions taken by visitors based on information provided by the FOLLOWME community, the community does not assume any form of liability unless otherwise expressly promised in writing.
Hot
No comment on record. Start new comment.