canadian-dollar-coins - CAD

GBP/CAD turned bullish on Tuesday and has recovered the losses incurred on Thursday and Friday. The pair is now trading at 1.7050, up 0.46% as of 11:25, after touching a daily high at 1.7063.

The sterling started to accelerate after the UK’s Office for National Statistics (ONS) said that job growth in Britain was the strongest in more than a year in the three months to November. Thus, the case for an interest rate cut by the central bank next week has faded a bit, though the Bank of England (BoE) will likely ease the policy in the first half of the year.

At the end of last year, two out of nine BoE policymakers surprisingly voted on two occasions to cut the rate, citing weakness in the labor market. Earlier this month, three other members of the BoE’s Monetary Policy Committee (MPC) joined their colleagues, including Mark Carney, saying that more stimulus might be required to support the economy.

The ONS data showed that the number of employed increased by 208,000 to 32.90 million, the biggest growth since the three months to January last year. Analysts polled by Reuters expected an increase of 110,000. The number of those unemployed declined by 7,000 to 1.31 million, with the unemployment rate keeping at 3.8%, the lowest level since 1975.

Interestingly, Thomas Pugh of Capital Economics said that the central bank was giving more importance to the labor market when assessing the state of the economy. He added:

“As such, the rebound in employment and slightly softer pay growth will give the MPC another reason not to cut rates from 0.75% to 0.50% at their next meeting.”

According to the ONS, the growth of total earnings, including bonuses, accelerated by 3.2%, the same rate as in the three months to October, which was the slowest since September 2018. Nevertheless, this was better than analysts’ expectation of a 3.1% increase. Without bonuses, pay growth slowed to 3.4%, in line with expectations.

David Freeman of ONS said:

“While pay growth has eased since last summer, with inflation remaining subdued, earnings are continuing to increase in real terms.” is a news site only and not a currency trading platform. is a site operated by TransferWise Inc. (“We”, “Us”), a Delaware Corporation. We do not guarantee that the website will operate in an uninterrupted or error-free manner or is free of viruses or other harmful components. The content on our site is provided for general information only and is not intended as an exhaustive treatment of its subject. We expressly disclaim any contractual or fiduciary relationship with you on the basis of the content of our site, any you may not rely thereon for any purpose. You should consult with qualified professionals or specialists before taking, or refraining from, any action on the basis of the content on our site. Although we make reasonable efforts to update the information on our site, we make no representations, warranties or guarantees, whether express or implied, that the content on our site is accurate, complete or up to date, and DISCLAIM ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. Some of the content posted on this site has been commissioned by Us, but is the work of independent contractors. These contractors are not employees, workers, agents or partners of TransferWise and they do not hold themselves out as one. The information and content posted by these independent contractors have not been verified or approved by Us. The views expressed by these independent contractors on do not represent our views.