The British pound’s strong rally saw prices rising to a fresh one-year high, but the gains were capped as the latest jobs data showed that wage growth increased just 2.1% on the year. Compared to the 2.9% increase in inflation, the soft pace of wage growth kept the GBP in check. Investors shrugged off the unemployment rate which fell further to 4.3%.
Elsewhere, the US producer price index data showed a modest increase of 0.2% on the headline and 0.1% on core PPI, which was slightly better than the previous month. The US dollar was seen recovering on the back of the PPI data and easing global tensions.
Looking ahead, the SNB and the BoE meetings are the big-ticket events today. Both central banks are expected to hold monetary policy steady. For the BoE, traders will be looking to the forward guidance from the central bank.
