{"id":4721,"date":"2018-07-17T00:00:00","date_gmt":"2018-07-17T04:00:00","guid":{"rendered":"https:\/\/currencylive.com\/100562-gbp-usd-uk-wage-data\/"},"modified":"2018-07-17T00:00:00","modified_gmt":"2018-07-17T04:00:00","slug":"100562-gbp-usd-uk-wage-data","status":"publish","type":"post","link":"https:\/\/currencylive.com\/news\/100562-gbp-usd-uk-wage-data\/","title":{"rendered":"GBP\/USD: Will UK Wage Data Pull Pound Lower vs. Dollar?"},"content":{"rendered":"<p>The pound initially moved higher on Monday, before falling lower later in the session as Brexit fears returned. The pound US dollar exchange rate hit low of US$1.3217, before edging marginally higher towards the close.<\/p>\n<table class=\"table table-bordered\">\n<thead>\n<tr>\n<th>What do these figures mean?<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>\n<p> When measuring the value of a pair of currencies, one set equals 1 unit and the other shows the current equivalent. As the market moves, the amount will vary from minute to minute. <\/p>\n<p> For example, it could be written: <em>1 GBP = 1.28934 USD<\/em> <\/p>\n<p> <em>Here, \u00a31 is equivalent to approximately $1.29. This specifically measures the pound\u2019s worth against the dollar. If the US dollar amount increases in this pairing, it\u2019s positive for the pound.<\/em> <\/p>\n<p> Or, if you were looking at it the other way around: <em>1 USD = 0.77786 GBP<\/em> <\/p>\n<p> <em>In this example, $1 is equivalent to approximately \u00a30.78. This measures the US dollar\u2019s worth versus the British pound. If the sterling number gets larger, it\u2019s good news for the dollar.<\/em> <\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>The pound attempted to extend Friday\u2019s gains on Monday, however Brexit news cut any move northwards short. The two principal problems regarding Brexit were; firstly, UK Prime Minister Theresa May completely ruled out the possibility of a second referendum. Pound investors had always had the hope that if Brexit looks like it was becoming too messy or was going to be too much of an economic strain, at the least there could be a second referendum. Today that possibility was ruled out.<\/p>\n<p>Secondly Theresa May caved into her Brexit hard line rebels, accepting amendments to the customs bill, which could make it impossible for her Brexit deal to be accepted by the EU. This was yet another weakening of position by the Prime Ministers, whose authority has been badly hit by recent events. A hard, no deal Brexit is looking increasingly likely, which is weighing on demand for the pound.<\/p>\n<table class=\"table table-bordered\">\n<thead>\n<tr>\n<th>Why is a \u201csoft\u201d Brexit better for sterling than a \u201chard\u201d Brexit?<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>A soft Brexit implies anything less than UK\u2019s complete withdrawal from the EU. For example, it could mean the UK retains some form of membership to the European Union single market in exchange for some free movement of people, i.e. immigration. This is considered more positive than a \u201chard\u201d Brexit, which is a full severance from the EU. The reason \u201csoft\u201d is considered more pound-friendly is because the economic impact would be lower. If there is less negative impact on the economy, foreign investors will continue to invest in the UK. As investment requires local currency, this increased demand for the pound then boosts its value.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>Today, market participants will look towards a slew of UK economic data which could give an indication as to the likelihood of an interest rate rise in August. UK jobs data, including unemployment and average wage growth will be under the spotlight. Analysts expect unemployment to remain at 4.2% and more importantly average wages to also remain stagnant at 2.5%. Should this be the case the pound could fall.<\/p>\n<table class=\"table table-bordered\">\n<thead>\n<tr>\n<th>How does strong jobs data boost the currency?<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>It works like this, when there is low unemployment and high job creation, the demand for workers increases. As demand for workers goes up, wages for those workers also go up. Which means the workers are now taking home more money to spend on cars, houses or in the shops. As a result, demand for goods and services also increase, pushing the prices of the good and services higher. That\u2019s also known as inflation. When inflation moves higher, central banks are more likely to raise interest rates, which then pushes the worth of the currency higher.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2><a href=\"#dollar-edges-lower-as-us-russian-relations-improve\" id=\"dollar-edges-lower-as-us-russian-relations-improve\"><\/a>Dollar Edges Lower As US Russian Relations Improve<\/h2>\n<p>The dollar was broadly lower in the previous session as investors looked towards Trump\u2019s meeting with Russian leader Vladimir Putin. The meeting appears to have gone well, with both sides saying that the US Russian relations had been at their worst since the cold war but are now significantly improved. A geopolitical risk decreased the demand for the US dollar decreased, thanks to the dollars safe haven status. This means in time of lower perceived risk the dollar is less desirable.<\/p>\n<p>Today investors will look towards an appearance by the US Federal Reserve\u2019s Jerome Powell in a biannual appearance before the Senate Panel. Once again dollar traders will be looking for confirmation of 4 rate rises across the year.<\/p>\n<hr \/>\n<p><small><\/p>\n<p><small><em><br \/>\nThis publication is provided for general information purposes only and is not intended to cover every aspect of the topics with which it deals. It is not intended to amount to advice on which you should rely. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content in this publication. The information in this publication does not constitute legal, tax or other professional advice from TransferWise Inc., Currency Live or its affiliates. Prior results do not guarantee a similar outcome. We make no representations, warranties or guarantees, whether express or implied, that the content in the publication is accurate, complete or up to date. Consult our <a href=\"https:\/\/currencylive.com\/risk-warning\/\">risk warning<\/a> page for more details.<\/em><\/small><\/p>\n<p><small><em>This article was initially published on TransferWise.com from the same author. The content at Currency Live is the sole opinion of the authors and in no way reflects the views of TransferWise Inc.<\/em><\/small><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The pound initially moved higher on Monday, before falling lower later in the session as Brexit fears returned. The pound US dollar exchange rate hit low of US$1.3217, before edging marginally higher towards the close. What do these figures mean? When measuring the value of a pair of currencies, one set equals 1 unit and [&hellip;]<\/p>\n","protected":false},"author":163946597,"featured_media":4722,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1379,1381],"tags":[1394,1398],"class_list":["post-4721","post","type-post","status-publish","format-standard","has-post-thumbnail","category-gbp","category-usd","tag-gbp","tag-usd"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.0 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>GBP\/USD: Will UK Wage Data Pull Pound Lower vs. Dollar? - Currency Live<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/currencylive.com\/news\/100562-gbp-usd-uk-wage-data\/\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Fiona Cincotta\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/100562-gbp-usd-uk-wage-data\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/100562-gbp-usd-uk-wage-data\\\/\"},\"author\":{\"name\":\"Fiona Cincotta\",\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/#\\\/schema\\\/person\\\/8ef0fafb6c93f1204150bb907b42cfec\"},\"headline\":\"GBP\\\/USD: Will UK Wage Data Pull Pound Lower vs. Dollar?\",\"datePublished\":\"2018-07-17T04:00:00+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/100562-gbp-usd-uk-wage-data\\\/\"},\"wordCount\":892,\"image\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/100562-gbp-usd-uk-wage-data\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/currencylive.com\\\/news\\\/wp-content\\\/uploads\\\/2019\\\/08\\\/100562-gbp-usd-uk-wage-data.jpg\",\"keywords\":[\"gbp\",\"usd\"],\"articleSection\":[\"GBP\",\"USD\"],\"inLanguage\":\"en-US\",\"copyrightYear\":\"2018\",\"copyrightHolder\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/#organization\"}},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/100562-gbp-usd-uk-wage-data\\\/\",\"url\":\"https:\\\/\\\/currencylive.com\\\/news\\\/100562-gbp-usd-uk-wage-data\\\/\",\"name\":\"GBP\\\/USD: Will UK Wage Data Pull Pound Lower vs. Dollar? 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