British Pound Slides to 1.3520 as 70% BoE June Cut Odds Jump
Updated
Updated · bitcoinworld.co.in · Aug 22
British Pound Slides to 1.3520 as 70% BoE June Cut Odds Jump
2 articles · Updated · bitcoinworld.co.in · Aug 22
Summary
Sterling fell below 1.3550 to an intraday low near 1.3520 after UK labor data strengthened bets that the Bank of England will cut rates sooner.
UK unemployment rose to 4.2% from 4.0%, employment fell by 23,000 and regular pay growth cooled to 5.7%, offsetting a slightly firmer 5.6% rise in total earnings.
Money markets now price a 70% chance of a 25-basis-point BoE cut in June, up from about 50% before the data, as easing wage pressure suggests more room to loosen policy.
GBP/USD has now fallen for four straight sessions, with a firmer US dollar and expectations of higher-for-longer Federal Reserve rates adding to pressure on the pound.
UK inflation data due later this week and the BoE's May meeting are the next tests; a softer inflation print could deepen rate-cut bets and push sterling toward 1.3500.