USD/JPY edged sharply lower on market uncertainty caused by Trump’s turmoil while the EUR/USD benefited from dollar’s weakness to surge and trading near six-months high. Meanwhile, sterling shrugged of its shoulders on the strong employment report published yesterday.
U.K. Unemployment Lowest in 42 years; Wage Growth Slower from Inflation Rate
The British pound ended Wednesday and early Thursday mixed against the G10 currencies, following the combination of a surprisingly low unemployment rate and a lower than the inflation rate, wage growth. Country’s unemployment rate for the period, January to March, fell at the record low of 4.6%, the lowest in 42 years. On the other hand, for the first time since mid-2014, the wage growth is lagging inflation rate. Even though the average weekly earnings excluding bonus rose by 2.1% in the three months to March, the inflation rate released on Tuesday rose even more, by 2.3% in March, year-over-year. The average earnings including bonus rose at a steeper pace of 2.4%, as expected from 2.3% before.
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