Sterling struggled in anticipation of US interest rate decision

Sterling struggled following the release of a mixed jobs report, which highlighted the slowdown in the pace of average wage growth throughout the UK. The UK jobs report revealed that unemployment has fallen to the lowest level since 2008, but with the focus largely on wage growth, a disappointing figure saw sterling suffer against the majority of its trade partners. Sterling traded largely sideways throughout the afternoon, with markets effectively holding their breath ahead of the US interest rate decision. Expectations were met with the Federal Reserve raising interest rates by 0.25%.

Although much of today will be driven by reaction to the last night’s rate statement, the release of retail sales data from the UK will provide some interest this morning with the forecast showing a year on year fall but a significant increase for November when compared to the negative growth figure for October.