According to Jinshi, Mitsubishi UFJ Financial Group pointed out that the pound may rise further as British employment data released on Tuesday cast doubt on expectations that the Bank of England will cut interest rates again later this year.
Lee Hardman, an analyst at MUFG, said that in the three months to July, UK employment growth exceeded expectations. The next rate cut by the Bank of England is not expected until the Monetary Policy Committee meeting in November.
Hardman stressed that the jobs data was unlikely to prompt the market to price in a rate cut as early as the Sept. 19 meeting, noting that a November rate cut was also “not a done deal.”