Sterling comes out as a big net winner for the week as positive U.K. data cuts back recent speculation that we may see a rate cut from the Bank of England soon.
United Kingdom Headlines and Economic data
- U.K. employment grows by 208,000 as weekly earnings growth stays at 3.2% – this was the catalysts for the rally higher in Sterling this week. Better-than-expected employment data prompted traders to reduce odds of a Bank of England rate cut, which recently grew thanks to recent commentary from BOE memebers (Bank of England governor hints at imminent interest rate cut)
- Setback for Boris Johnson as Lords amend Brexit bill
- Buoyant jobs market eases pressure on Bank of England to cut rates
- UK public sector borrowing increases by £4B y/y in December
- UK manufacturing business optimism improves at the strongest pace since 2014 – CBI