UK wage growth surprised to the upside during April. Despite the retreat from new multi-month tops in the 0.8930 region, the European cross keeps the positive ground so far this week, advancing uninterruptedly since sub-0.8500 levels recorded in early May. Today’s current knee-jerk comes in response to the pick up in the demand for the British Pound, in turn supported by an auspicious UK labour market. Closer to home, EMU Sentix index dropped to -3.3 for the month of June.
In the UK economy, today’s better-than-expected labour market report have given some wings to the British Pound, although the bull run should be short-lived. The cross is losing 0.15% at 0.8903 and faces initial contention at 0.8826 seconded by 0.8780 and finally 0.8724 . On the other hand, a break above 0.8932 would expose 0.9062 and finally 0.9092 .
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