Ster­ling hits post-Brexit vote high against dol­lar ahead of pay data

The Daily Telegraph - Business - - Front Page - By Tom Rees

THE pound capped off a seven-day win­ning streak by climb­ing to a post-Brexit vote high against the dol­lar as at­ten­tion on cur­rency mar­kets turned to the pay squeeze on UK house­holds fi­nally end­ing.

Forex an­a­lysts pinned the pound’s jump above $1.43 against the dol­lar for only the sec­ond time since the EU ref­er­en­dum on ex­pec­ta­tions that wage growth would fi­nally nudge past in­fla­tion in fig­ures due to­mor­row.

Af­ter 13 months of neg­a­tive real wage growth, economists fore­cast that pay hit 3pc in Fe­bru­ary, surg­ing past in­fla­tion at 2.7pc.

The bench­mark rate for ster­ling at the end of trad­ing in Lon­don had jumped 0.6pc against the dol­lar to $1.4328, while against the euro it had hit an 11-month high.

The pound threat­ened its post-ref­er­en­dum in­tra­day high of $1.4347 reached in Jan­uary be­fore easing back. An­a­lysts also said that the dol­lar’s safe haven ap­peal was wan­ing as ten­sions cooled in the Mid­dle East, which also helped ster­ling strengthen against the green­back.

With the pound’s Brexit jit­ters al­layed by the agree­ment of a tran­si­tion deal, ING’s Vi­raj Pa­tel ar­gued that traders were back to “good old-fash­ioned data watch­ing” ahead of the Bank of Eng­land’s May meet­ing.

Newspapers in English

Newspapers from UK

© PressReader. All rights reserved.