UPDATE 1-Sterling rises after UK jobs rise eases BoE’s worries

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LONDON, Nov 16 (Businesshala) – The pound rose on Tuesday as traders voiced some of the Bank of England’s concerns about the risks of raising interest rates, data after British employers called for a job-protecting furlough scheme in October. Later more people were hired. Finished.

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Fears of a slowdown in the job market following the end of the furlough scheme on 30 September prompted the BoE to surprise the market and put rates on hold at its latest meeting, when sterling fell against the dollar in 14 months. she came. ,

Sterling rose 0.5% versus the euro after data showed the number of employees on the payrolls of businesses in the UK increased from 160,000 in October to 29.3 million, up 0.8% in February 2020 compared to February 2020, based on data from tax officials.

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“Tuesday’s strong employment data may now renew confidence in imminent growth by the Bank of England,” said Argentine forex analyst Joe Tucci. “There is cautious optimism that Sterling may finally get some much-needed uplift,” he added.

At 1545 GMT, the pound was up 0.3% against the single currency at 84.50 pence.

Contrary to a stronger dollar, the pound was up 0.1% to $1.3426, erasing some of its earlier gains after data showed US retail sales rose higher than expected in October.

The pound has gained some ground this week after falling to its lowest level in 11 months against the dollar on Friday.

Backing Sterling, BoE Governor Andrew Bailey said earlier this month his vote to halt interest rates was too close. The lack of official data about what happened to the workers who were on leave even after the plan ended had forced them to wait.

The BoE may be the first major central bank to raise interest rates, but whether that initial hike comes next month or early next year has left economists surveyed by Businesshala.

Meanwhile, limiting sterling gains, there are concerns that a disagreement between Britain and the EU over Northern Ireland could trigger a major trade disruption, affecting the British economy, which is lagging behind that of other prosperous countries. Is.

Reporting by Joyce Alves, Editing by Pravin Char, William McLean


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