Sterling powered to a five-month high against the dollar on Wednesday after data showed British earnings growth picking up more than expected in the first quarter, while the unemployment rate fell to its lowest since mid-2008.
The Office for National Statistics said total average weekly earnings in the three months to March, including bonuses, rose 1.9 per cent compared with the same period a year earlier, while the unemployment rate fell to 5.5 per cent — its lowest level since the three months to July 2008.
Sterling rose to $1.5749 after the data, having traded at $1.5685 before its release. That left the pound up half-a-per cent and at its strongest since December 17. Against the euro, sterling hit a three-week high of 71.305 pence after the data, from 71.55 pence beforehand.
British government bond futures pared gains. June futures fell to as low as 116.91, up 28 ticks on the day, from 117.12 before the data. They last traded at 117.02.
Britain’s FTSE 100 index remained up by around 0.7 per cent after the data was released.