# Sterling little changed after mixed labour market data
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-08-16
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: GBP Little Changed as Job Market Shows Mixed Data
Meta Description: Read about how mixed labour market data is impacting the value of the British pound, with wages rising but real pay dropping amid surging inflation.
URL: https://financedigest.com/sterling-little-changed-after-mixed-labour-market-datahtml

![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2022-08-16t081936z1lynxmpei7f084rtroptp4britain-economy-1736815462744-compressed.jpg)

By Samuel Indyk

LONDON (Reuters) – The British pound was little changed on Tuesday, having briefly fallen to its lowest level in over a week, after mixed data showed a jobs market that is still hot, although some early signs it may be starting to cool.

Britain’s unemployment rate held close to a half-century low, but the number of people employed grew less than expected in a Reuters poll and the number of job vacancies fell for the first time since mid-2020, the Office for National Statistics (ONS) said.

Wages, not including bonuses, rose by 4.7%, above expectations of 4.5%. But the real value of pay, not including bonuses, dropped faster than at any time since records began in 2001, the ONS said, amid [surging inflation](https://www.financedigest.com/boes-bailey-speaks-about-surging-inflation-and-rate-hikes.html "BoE’s Bailey speaks about surging inflation and rate hikes").

By 0804 GMT, the pound was flat at $1.2051, after earlier [dropping to its lowest level since](https://www.financedigest.com/optimism-levels-drop-to-low-of-17-percent-according-to-first-survey-since-banking-regulations.html "Optimism levels drop to low of -17 percent, according to first survey since banking regulations") Aug. 5 at $1.2008.

Against the euro, it was [little changed](https://www.financedigest.com/stocks-dollar-little-changed-as-inflation-data-sends-mixed-signals.html "Stocks, dollar little changed as inflation data sends mixed signals") at 84.275 pence.

The Bank of England (BoE) is [closely watching labour](https://www.financedigest.com/can-digital-labour-displace-cfos-in-the-close-process.html "CAN ‘DIGITAL LABOUR’ DISPLACE CFOS IN THE CLOSE PROCESS?") market data for signs inflationary pressures are cooling, but analysts said the mixed data would be unlikely to move the needle when it comes to the policy decision next month.

The labour market data was a bit of a mixed bag,” said Michael Brown, [head of market](https://www.financedigest.com/hsbc-appoints-new-markets-head-amid-wider-investment-bank-reshuffle.html "HSBC appoints new markets head amid wider investment bank reshuffle") intelligence at Caxton.

I don’t think this is going to impact the [Bank of England’s thinking in terms of interest rates,”](https://www.financedigest.com/bank-of-england-officials-split-over-future-path-for-rates.html "Bank of England officials split over future path for rates") Brown added, saying he expected another 50 basis point rate rise in September.

Money markets are currently pricing in around an 83% chance of a second consecutive 50 basis point hike from the BoE next month, little [changed from before the data](https://www.financedigest.com/data-centres-and-the-changing-financial-trading-landscape.html "Data centres and the changing financial trading landscape").

Looking ahead, focus is likely to turn to Wednesday’s [inflation figures](https://www.financedigest.com/french-inflation-revised-upwards-in-february-to-7-3-final-figures.html "French inflation revised upwards in February to 7.3% – final figures") for July for clues on the BoE’s next move.

The headline consumer [price index is forecast to have increased](https://www.financedigest.com/coca-cola-hbcs-annual-profit-beats-warns-of-price-increases.html "Coca-Cola HBC’s annual profit beats, warns of price increases") to 9.8% in July, although the BoE expects a peak later in the year above 13% amid soaring energy prices.

(Reporting by Samuel Indyk; Editing by Mark Potter)


---
This blog is powered by Superblog. Visit https://superblog.ai to know more.
---