Sterling edges up against euro and dollar

The pound recovered after initial disappointment over the UK jobs report and climbed higher against the greenback as investors awaited the Federal Reserve’s interest rate decision.

Sterling was up about 0.1% against the euro to trade at 1.135 but rose more than 0.3% versus the US dollar to 1.336.

Markets were digesting data showing that the number of people in work across the UK has fallen by 56,000 in recent months, the biggest quarterly drop in more than two years.

Figures from the Office for National Statistics (ONS) also showed average earnings increased by 2.5% in the year to October, below the rate of inflation.

Disappointment over the jobs report was countered by weakness in the US dollar as investors took stock of inflation data from across the pond ahead of the Fed rate decision set to be announced later yesterday.

The pound’s gains weighed on the FTSE 100, which edged into the red by 0.05% or 3.9 points to 7,496.51 points, but the blue chip index managed to outperform European peers as the French Cac 40 and German Dax ended the day down 0.5% and 0.4%, respectively.

In oil markets, Brent crude prices tumbled 1.5% to $62.82 (£47.02) per barrel as investors reacted to data showing a rise in US petrol stocks as well a further increase in US crude production.

The biggest risers on the FTSE 100 were Hargreaves Lansdown up 72p at 1,693p, Glencore up 6.55p to 354p and BAE Systems up 10p to 565.5p.

The biggest fallers were Ashtead Group down 111p to 1,949p, Centrica down 5.3p to 139.5p and Shire down 83p to 3,677.5p.