The GBP/USD is down against the general strength of the USD, BBH FX analysts report.
The swaps market is valuing 50 basic points cuts in the next 12 months
“The January Kingdom labor market data met the expectations and do not alter the expectations of BOE rates. The unemployment rate stood at 4.4% compared to 4.4% of December, the total regular salary was 5.9% year -on -year compared to 5.9% of December, and the regular salary of the private sector relevant for the policy was 6.1% year -on -year compared to 6.2% of December.”
“The advanced indicators point to a weaker labor market. In February, the permanent placement index of KPMG/REC remained in contraction territory for 29th consecutive month, and the DMP survey showed that companies did not expect growth in employment during the next year. In addition, the relationship of unemployment vacancies is below level 0.6 that the bank researchers consider consistent with a balanced labor market.”
“The Bank of England is expected to maintain the policy rate by 4.50%. The BOE is also expected to adhere to its orientation of a gradual and careful approach to future feat cuts. The economy of the United Kingdom contracted unexpectedly in January, but the underlying inflation remains stubbornly high above 2%. The next monetary policy report with updated macroeconomic projections will be published in May. The next 12 months, the swap market is valuing cuts of 50 basic points and small probabilities of an additional cut of 25 basic points. “
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
