The sterling has soared to the peak on Tuesday trading session driven by the released salary report in the UK.
According to the available data, the salary rise posted the highest pace over the past 10 years in the country. This definitely leads to a better outlook for UK's economy. The sterling-to-US dollar hiked to 1.3212 today. The euro also weakened against the British currency reaching some 0.8766. For reference, the rate was at 0.8788 before the report.
The UK Office for National Statistics reported that an average salary level without bonuses increased by 3.1% y-o-y in June-August.
The head of ONS David Freeman noted:
“Regular monthly wage packets grew at their strongest rate in almost a decade but, allowing for inflation, the growth was much more subdued.”
At the same time, the level with bonuses went up b 2.7% in August, the highest level since February, while the forecast was voiced at 2.6%.
The UK's inflation was 2.5% y-o-y in August, so buying capacity showed moderate strengthening in the country. As for unemployment, the rate keeps steadily staying at 4.0% in August, coming in line with the previously expected level.