Pound down on weak job figures

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The pound is trading lower today after wage growth unexpectedly fell last month pushing back an interest rate hike from the Bank of England any time soon.

The unemployment rate released today from the national bureau of statistics showed a figure of 5.1 percent while the wage growth number fell to 1.8 percent from 2.1 percent, which shows the economy is on a downslide in the lead up to the referendum to leave the Eurozone.

Weak growth is likely to add support to the leave campaign as any negative numbers can be attributed to EU membership

Jeremy Stretch, head of foreign-exchange strategy at Canadian Imperial Bank of Commerce in London noted that Governor Mark Carney’s words about a slowdown in the economy are starting to ring true

 “Overall it appears that the period of economic stagnation that Carney referred to yesterday continues to extend,”

“If we see a weak retail sales report tomorrow, sterling up at these levels looks far too high, even if the polls are showing modest gains for the remain campaign at this point.”

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