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19 Dec 2013
Flash: GBP set to outperform - BTMU
FXstreet.com (Barcelona) - Lee Hardman, FX Analyst at the Bank of Tokyo Mitsubishi UFJ notes that the pound is also continuing to outperform following the release of the latest much stronger than expected UK employment report.
Key Quotes
“The report revealed that the UK added another robust 250k jobs over the last three months bringing cumulative job gains over the past year to 485k. The pace of employment growth is strong enough to prompt a sharp fall in the unemployment rate which declined by 0.2 point to 7.4%.”
“The unemployment rate could hit the BoE’s 7.0% threshold before the middle of next year. The market will now be more comfortable in pricing in the first BoE rate hike in the 2H 2014 although the BoE may still delay raising rates until early 2015.”
Key Quotes
“The report revealed that the UK added another robust 250k jobs over the last three months bringing cumulative job gains over the past year to 485k. The pace of employment growth is strong enough to prompt a sharp fall in the unemployment rate which declined by 0.2 point to 7.4%.”
“The unemployment rate could hit the BoE’s 7.0% threshold before the middle of next year. The market will now be more comfortable in pricing in the first BoE rate hike in the 2H 2014 although the BoE may still delay raising rates until early 2015.”