Published On: Tue, Jun 11th, 2019

Pound US dollar exchange rate: GBP rises as UK wages impress | City & Business | Finance


This morning’s UK average earnings figures increased in April, exceeding the consensus expectation and rising to 3.4 percent, providing some uplift to the pound. This will be seen as good news by Sterling investors as rising wages normally translates to increased spending power, which in turn boosts domestic growth. The US dollar, meanwhile, received a boost yesterday as Donald Trump cancelled his threatened tariffs on Mexican goods, which reduced the likelihood of a damaging trade spat between the two nations. Willi Delwiche, an Investment Strategist at the financial services company Baird, said: “Relief in trade tensions, in terms of Mexico, and hope for relief in trade tensions with China seem to be helping the market today.”

Easing tensions between the US and China came about after the Chinese President Xi Jinping indicated a generally positive relationship with the US and in particular, with President Donald Trump.

He said that the two economic superpowers had it in their interests to secure a trade deal. 

Back in the UK, the pound US dollar pairing is reacting to the Tory leadership race, with Boris Johnson remaining a favourite.

Today also saw the publication of the UK ILO unemployment figures for April.

This held steady at 3.8 percent, despite the forecast 3.9 percent increase. 

US dollar traders are awaiting today’s publication of the US producer price index figures excluding food and energy, which are expected to ease. 

Now that the leadership race is heating up amongst the Conservatives, with Brexit being determined to a great extent by the future leadership, this is likely to hold back the pairing until a clear direction is apparent.



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