The U.S. dollar dropped on Tuesday, while Sterling and Euro rose
Today, the Euro and the British Pound both soared against each other. New data shows that the eurozone’s employment rate rose more than expected. The U.K. also saw a surge in basic pay growth. These reports highlight the labor market’s resilience across the region.
Although economic growth is slowing across the eurozone, there was an increase in employment of 0.4% quarter-onquarter. In the United Kingdom, however, basic pay growth accelerated in the fourth quarter of 2022. The cooling labor market hadn’t affected it as much as economists feared. The Bank of England tracks the pace of the country’s pay growth. Based on these data, the BoE determines whether to raise interest rates.
On Tuesday, the Euro surged by 0.3% versus USD and traded at $1.0756. The Euro has fallen by 2.56% after hitting a peak of $1.1034 in February 2nd, a ten-month period. The British Pound has risen 0.4% to $1.2192 after briefly climbing to an 11 day high against the dollar.
Equiti Capital’s chief macroeconomist Stuart Cole noted that the Bank of England…