The pound hit its highest level since the Brexit vote


Sterling traded at highs of 1.4373 this morning, its highest point since 23 June 2016 when the vote to leave the European Union prompted a collapse.

Markets care about the data because of the influence that changes in unemployment and wages can have on inflation, in that lower unemployment and faster wage growth means higher inflation further down the line. With unemployment at its lowest level since the 1970s, employers have begun raising pay for staff more quickly, though by less than increases of about 4 percent a year before the financial crisis.

LONDON - The British pound climbed to its highest level against the dollar since Britain voted to leave the European Union nearly two years ago on Tuesday.

The pound has also been at its highest level for almost a year against the euro in recent days, at just under €1.16.

The pound is also going strongly against the euro, reaching €1.1582, its highest level since May 2017. British households - whose spending is the main driver of the country's economy - have been hit by the double whammy of slow wage growth and a jump in inflation, due mostly to the fall in the value of the pound after the 2016 Brexit vote.

The Pound pared earlier gains Tuesday as traders responded to a mixed labour market report, which showed wage packets growing slower than was expected in February, while the unemployment rate fell to a new 42 year low.

More news: Florida Mom Let 2-Year-Old Child Smoke Meth And Weed
More news: London stabbing: man killed in Forest Gate
More news: One Plus 6, Full Specifications, Features, and Price in India

However, since the middle of last year, the pound has ripped higher, with the currency trading more than 15% above levels seen this time last year.

Ahead of the data, the pound climbed against its major counterparts.

Sterling has strengthened notably over the course of the previous year as the risks of a hard Brexit have diminished, while the dollar has also weakened.

Viraj Patel, a currency strategist with Dutch bank ING, labeled sterling the "darling of the currency world", in an analysis released at the end of last week.

Anticipation of a rate hike mounted after the BoE warned in February that it could raise rates further and faster than markets were gave it credit for if the United Kingdom inflation picture evolved in line with its most recent forecasts.

United Kingdom unemployment rate falls once again, dropping from 4.3% to 4.2%. Solid numbers would likely push the pound even higher.