Updated
Updated · tmgm.com · Jul 21
Pound Rebounds to 218.55 Against Yen as UK Adds 147,000 Jobs and Unemployment Holds at 4.9%
Updated
Updated · tmgm.com · Jul 21

Pound Rebounds to 218.55 Against Yen as UK Adds 147,000 Jobs and Unemployment Holds at 4.9%

3 articles · Updated · tmgm.com · Jul 21

Summary

  • GBP/JPY climbed near 218.55 on Tuesday, snapping a three-day losing streak after UK labor data showed stronger-than-expected hiring in the three months to May.
  • 147,000 jobs were created, up from 100,000 previously, while the ILO unemployment rate held at 4.9% instead of rising to the 5.0% economists expected.
  • Wage signals were softer: average earnings excluding bonuses stayed at 3.4%, and pay including bonuses cooled to 4.3% from 4.4%, below the 4.5% forecast.
  • That cooling could ease fears of near-term Bank of England tightening, shifting attention to Wednesday's UK CPI report, where headline inflation is seen slowing to 2.7% and core to 2.5%.
  • The yen side of the cross also faces an inflation test, with Japan's June core CPI due Friday and expected to accelerate to 1.6% from 1.4%.

Insights

Is the UK's strong jobs report masking a much deeper weakness in its labor market?
Why is the Yen still weak despite Japan's biggest interest rate hike in 31 years?
With its main forecasting model flawed, can the Bank of England steer Britain's economy through the Iran War's fallout?