Today in the United Kingdom data on important economic markers was released. Most notably, the UK published its wage growth report and inflation data.
While it was forecasted that wage growth would amount to 3.0%, the numbers actually came in at 2.8%, disappointing investors. Furthermore, inflation was lower than wage growth at 2.7%, likely paving the way for an interest rate hike by the Bank of England next month. This will be more firmly confirmed tomorrow when the March inflation report is to be published.
As a result of the publications, the British pound began to decline once again. The GBP/USD fell from its biggest recent high at 1.4377 down to 1.4331 just this morning.
Furthermore, the British pound might also be affected by the recent developments in Syria. The United Kingdom joined the United States in their retaliation against the chemical gas attack in Syria, prompting Russia’s anger. It is yet unclear whether and how Russia would answer that.
