Sterling slumps after job report weakens UK market

<img width="562" height="339" src="https://www.leaprate.com/wp-content/uploads/2017/01/bank-of-England.jpg" class="webfeedsFeaturedVisual wp-post-image" alt="" decoding="async" style="float: left; margin-right: 5px;" link_thumbnail="" srcset="https://www.leaprate.com/wp-content/uploads/2017/01/bank-of-England.jpg 730w, https://www.leaprate.com/wp-content/uploads/2017/01/bank-of-England-230×138.jpg 230w, https://www.leaprate.com/wp-content/uploads/2017/01/bank-of-England-380×228.jpg 380w, https://www.leaprate.com/wp-content/uploads/2017/01/bank-of-England-88×53.jpg 88w, https://www.leaprate.com/wp-content/uploads/2017/01/bank-of-England-150×90.jpg 150w, https://www.leaprate.com/wp-content/uploads/2017/01/bank-of-England-500×301.jpg 500w" sizes="(max-width: 562px) 100vw, 562px" /><p>The Job report detailed a record 2-year rise in unemployment alongside a fall in job vacancies, the worst witnessed since July 2021. It appears that the waves of fluctuation for the UK economy and GBP are set to continue shrinking the economy; in July this year, the economy shrank 0.5%, far worse than the predicted 0.2% shrinkage.</p>
<p>The data, published by the Office for National Statistics, also outlined a slight positive in its findings – average earnings rose to 8.5% from May to July. This increase, although minor, works to prove the BoE’s interest rate hikes are potentially encouraging more spending on commercial necessities.</p>
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<div><img aria-describedby="caption-attachment-450512" decoding="async" class="wp-image-450512" src="https://www.leaprate.com/wp-content/uploads/2023/09/FIN-LP-Sterling-slumps-after-job-report-weakens-UK-market-5153467508-Janet-Mui-700×700.jpg" alt="" width="98" height="98" srcset="https://www.leaprate.com/wp-content/uploads/2023/09/FIN-LP-Sterling-slumps-after-job-report-weakens-UK-market-5153467508-Janet-Mui-700×700.jpg 700w, https://www.leaprate.com/wp-content/uploads/2023/09/FIN-LP-Sterling-slumps-after-job-report-weakens-UK-market-5153467508-Janet-Mui-250×250.jpg 250w, https://www.leaprate.com/wp-content/uploads/2023/09/FIN-LP-Sterling-slumps-after-job-report-weakens-UK-market-5153467508-Janet-Mui-150×150.jpg 150w, https://www.leaprate.com/wp-content/uploads/2023/09/FIN-LP-Sterling-slumps-after-job-report-weakens-UK-market-5153467508-Janet-Mui-768×768.jpg 768w, https://www.leaprate.com/wp-content/uploads/2023/09/FIN-LP-Sterling-slumps-after-job-report-weakens-UK-market-5153467508-Janet-Mui-120×120.jpg 120w, https://www.leaprate.com/wp-content/uploads/2023/09/FIN-LP-Sterling-slumps-after-job-report-weakens-UK-market-5153467508-Janet-Mui-245×245.jpg 245w, https://www.leaprate.com/wp-content/uploads/2023/09/FIN-LP-Sterling-slumps-after-job-report-weakens-UK-market-5153467508-Janet-Mui-500×500.jpg 500w, https://www.leaprate.com/wp-content/uploads/2023/09/FIN-LP-Sterling-slumps-after-job-report-weakens-UK-market-5153467508-Janet-Mui.jpg 800w" sizes="(max-width: 98px) 100vw, 98px" /><p>Janet Mui Source: LinkedIn</p></div>
<p>However, analysts still predict further interest hikes for September and October. Janet Mui, Head of Market Analysis at wealth manager RBC Brewin Dolphin, commented:</p>
<blockquote><p>The problem, and a big headache, for the Bank of England at this juncture is that wage growth remains very elevated, and that is a factor that the BoE judges to drive sticky core inflation. With that in mind, today’s wage growth figure lends support to the hawks for a 25-basis point rate increase in September.</p></blockquote>
<p>The European Central Bank is also set to decide on further interest rate hikes, with the UK market weighing heavily on investor movement.</p>
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<p>The post <a rel="nofollow" href="https://www.leaprate.com/forex/sterling-slumps-after-job-report-weakens-uk-market/">Sterling slumps after job report weakens UK market</a> appeared first on <a rel="nofollow" href="https://www.leaprate.com">LeapRate</a>.</p>