After falling further against both the euro and US dollar overnight, sterling stabilised somewhat on Wednesday following a better-than-expected labour report released from the UK.
The British currency had fallen to a fresh six-year low against the US dollar during the early hours of Wednesday morning, and also slipped to the lowest rate in 12-months against the euro – thanks to the comments made by Bank of England (BoE) Governor Mark Carney’s on Tuesday. Any further poor data from the UK yesterday could have seen sterling fall significantly; thankfully sterling found support following the release of the data that showed unemployment rates had fallen to a six-year low of 5.1% in December. This compensated for a lower than expected increase in average earnings of 2% over the previous quarter.
UK data takes a back seat today, with interest turning to the Eurozone and the latest interest rate decision from the European Central Bank (ECB).