Pound Spikes Up As Strong Employment Data Bolsters BoE Rate Hike Hopes
November 15 2021 - 11:34PM
RTTF2
The pound gained ground against its major counterparts in the
European session on Tuesday, as the nation's employment rose in the
third quarter, easing worries about the labor market and fueling
hopes for a rate hike by the Bank of England in December.
Data from the Office for National Statistics showed that the
employment rate increased 0.4 percentage points to 75.4
percent.
The unemployment rate decreased 0.5 percentage points on the
quarter to 4.3 percent. The expected rate was 4.4 percent.
In July to September, annual growth in average total pay
including bonuses logged an annual growth of 5.8 percent, bigger
than the economists' forecast of 5.6 percent.
Excluding bonuses, average total pay advanced 4.9 percent
annually versus the expected rate of 5 percent.
During August to October, the number of job vacancies continued
to rise to a new record of 1,172,000, data showed.
In October, there were 29.3 million employees, up 160,000 on the
revised September 2021.
Investors cheered constructive talks between United States
President Joe Biden and Chinese President Xi Jinping, as both
leaders emphasized the need to improve communication.
Biden said that both leaders should ensure that their
competition "does not veer into conflict."
The pound touched a 6-day high of 1.3465 against the dollar, up
from yesterday's close of 1.3410. Next key resistance for the pound
is found around the 1.37 region.
The pound was up against the yen, at nearly a 2-week high of
153.88. At Monday's close, the pair was valued at 153.03. The pound
may challenge resistance around the 155 level.
The pound moved up to near a 2-week high of 1.2464 against the
franc and a fresh 2-week high of 0.8445 against the euro, from
Monday's closing values of 1.2397 and 0.8470, respectively. On the
upside, 1.28 and 0.83 are likely seen as its next resistance levels
against the franc and the euro, respectively.
Looking ahead, Eurozone GDP and employment data for the third
quarter are due in the European session.
U.S. retail sales, industrial production and import and export
prices for October, business inventories for September and NAHB
housing market index for November will be featured in the New York
session.
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