UK Economic Data Surpasses Expectations
Sterling was supported by a stronger set of UK releases than other major economies last week. Unemployment fell unexpectedly to 4.7%, the lowest in more than a year, while regular wage growth edged up to 3.7%. September inflation rose to 3.5%, beating consensus, and core and services measures also came in above expectations.
Market Reaction And Outlook
Momentum extended into October, as the flash composite PMI climbed to an eight-month high of 53.1 and surveys pointed to firms adding staff for the first time in two years. The pound rose against both the dollar and the euro. Markets are positioned for a November move from the Bank of England, with attention turning to Wednesday’s budget for any fiscal developments that could unsettle the gilt market.
