LONDON – The Pound Sterling extended gains after the United Kingdom’s earnings rose 2.4 percent in December, lifting the GBP/USD exchange rate to 1.4119, a new high since the Brexit vote in June 2016, according to a report from Dow Jones.
The earnings were higher than the 2.3 percent growth forecast for them in a Wall Street Journal poll and the data showed the UK unemployment rate stayed steady at 4.3 percent in December.
Better-than-expected wage growth shrank the gap between earnings growth and inflation in the UK. The pound sterling exchange rate with the United States’ currency is also helped by dollar weakness on the back of fears of US protectionism.
The euro to pound exchange rate fell to 0.8750 after the data is released, from 0.8764 beforehand, Dow Jones added.