Ongoing concerns over the possibility of a hard crash out of the European Union dominated sentiment for Pound Sterling traders. Even unexpectedly upbeat wage data only provided a knee jerk reaction. The British labor market showed unexpected improvement in the second quarter, hitting an 11-year peak on total earnings growth (with bonuses) which rose by 3.7% annually, a rate not seen since mid-2008. Analysts say that that could put the Bank of England into an awkward position, leaving them to maintain rates at current levels.
As reported at 11:31 am (GMT) in London, the GBP/USD was trading at $1.2083, up 0.0182% and off the earlier high of $1.2085. The EUR/GBP was trading at 0.9286 Pence, a gain of 0.0442%; the pair has ranged from a low of 0.92678 Pence to a high of 0.92950 Pence.
ZEW Surveys Show Declining Sentiment
In the Eurozone, the Euro struggled for traction against the greenback after the latest disappointing economic news. The ZEW surveys were released earlier today, showing business sentiment from Germany, the EU;s largest economy, and the Eurozone as a whole. Across the board, the figures were far below analysts’ expectations. In Germany, the Current Situation reading was -13.5, with an expected -7.0, worsening from -1.1. The Economic Sentiment reading was -44.1 against a forecast of -28.5, from July’s -24.1. In the Eurozone, the August reading was -43.6, far worse than the -21.7 expected. The EUR/USD was trading flat at $1.1216.