On Wednesday, February 21, the sterling rate fell to the bottom over the day driven by the increased unemployment. The released labor report affected forecasts for the interest rate upward revision though wages rose.
The sterling-to-US dollar went down to 1.3943 today (0.36% down), against some 1.3965 before. The euro to sterling rate peaked over the day coming to 0.8832 (0.8825 before).
The sterling has lost grounds after the release of the labor report in the UK. Specifically, the data showed that the jobless rate in the country hiked to 4.4% in October-December posting the first increase over about two years.
As a result, the total number of the unemployed amounted to 1.47 million (46,000 up), while that of the employed reached 32.147 million (88,000 up) over the period under review.
According to the report, despite higher wages inflation still exceeds earnings. The annual inflation rate stands at 3%. The earnings increased by 2.5% y-o-y over the period under review (2.3% up a month before), the data shows.
Even with improved wages, the forecasts for the short-term interest rate upward revision by the Bank of England have been affected by rising jobless figures.