Market comment - UK labour market data fail to sway sterling

Davy Research
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Yesterday’s UK labour market data showed employment up 0.6% in Q1 2018, the unemployment rate steady at 4.2% and regular pay growth accelerating to 2.9%. However, markets are only pricing in a 50% probability of a rate hike in August, still not convinced the UK is not suffering a deeper slowdown, and with the threat of a breakdown in Brexit negotiations ever more likely as the key June 28th EU leaders’ summit meeting approaches.