The pound euro exchange rate (GBP/EUR) is rising above €1.17 paring yesterday’s losses.
The pound is pushing higher after UK average earnings rose to a record high of 7.3% 3Mo/Yr in May, above the 7.1% forecast. The data fuels bets that that BoE could hike rates by a further 50 basis points in August.
The market is pricing in peak rates of 6.5%, 150 basis points above the current level.
The euro trades lower ahead of the German ZEW economic sentiment reading which is expected to fall to -10.5 from -8.5.
The data comes after yesterday’s Sentix investor sentiment fell to -22.9 from -17, fueling concerns of a prolonged recession.