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.”
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 66% of retail investor accounts lose money when trading CFDs with this broker. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Risk warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 66% of retail investor accounts lose money when trading CFDs with this broker. Before deciding to trade foreign exchange you should consider whether you understand how CFDs work, your investment objectives, your level of experience and readiness of taking risk. The possibility exists that you could sustain a loss of some or of all of your initial investments and therefore you should not risk more than you are prepared to lose. Please seek independent financial advice if necessary.
|By clicking "Continue" you will be redirected to the website operated by FIBO Group, LTD company registered in BVI and regulated by FSC. Please familiarize yourself with the Customer Agreement through the link. Click "Cancel" to remain on this page.|