Wage data in the UK came in higher than expected, lifting the Pound. But GBP/USD could drop back below 1.21 following the US Consumer Price Index (CPI) report, economists at ING report.Sticky wages cement BoE March hike expectations
“The Bank of England’s preferred measure of wage growth, the 3-month/3-month annualised change has now been consistently above 7% for a few months, and there is very little evidence of that wage slowdown suggested by some surveys.”
“Tomorrow’s CPI release will be another key event for the pound, but we think that given the increased focus of the Bank of England on wage dynamics, today’s data strongly endorses a March 25 bps rate hike (which is our base case).”“EUR/GBP may well break below 0.8800 this week, while GBP/USD could fall back below 1.2100 after the US CPI print.”
EUR/USD recaptures 1.0750 ahead of US CPI
EUR/USD Is picking up fresh bids to extend gains above 1.0750 in the European session. Broad US Dollar weakness is aiding the upside in the pair, as investors remain cautious ahead of the all-important US CPI release.
GBP/USD rises toward 1.2200 as focus shifts to US CPI
GBP/USD has gathered bullish momentum and climbed toward 1.2200 in the European trading hours. The data from the UK showed that ILO Unemployment Rate remained unchanged at 3.7% in December while annual wage inflation, ex-bonus, rose to 6.7%. US CPI is next in focus.
Gold clings to gains above $1,860, focus remains on US CPI report
Gold price attracts some buying on Tuesday and recovers a major part of the previous day’s slide to the $1,850 level, or its lowest level since January 6. Gold sticks to modest gains through the first half of the European session.
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