The pound strengthened yesterday, ahead of a week of data.
This morning’s earnings data showed that interest rate rises may be starting to deter firms from agreeing large pay settlements. The rise was 7.8% excluding bonuses, showing a real terms (i.e. allowing for inflation) growth of 1.1%. However, wage rises are less high than in the previous period, leading to a weakening of sterling so far this morning.
A heavy data week continues tomorrow with inflation. The markets are not predicting a huge fall, with only a drop from 6.7% to 6.6% expected.
GBP/EUR past year
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