Image: Dave Collier, sourced: Flickr, licensing: CC 2.0.
Surprisingly large decline in payrolls reported.
There was a marked drop in the value of the pound after the UK’s ONS reported payrolled employment fell 32k in October, making for the biggest fall since November 2020.
Sterling’s fall reflects a belief by market participants that the Bank of England will have to respond by cutting interest rates further and faster.
Also, the ONS reported annual average regular earnings growth was 6.6% for the public sector and 4.2% for the private sector.
The data paints a startling picture of the UK, where public sector spending continues to run out of control, requiring crunching tax rises in the upcoming budget.
The mix of unsavoury data triggered a drop in the pound to euro exchange rate from 1.1362 from 1.1390.
The pound to dollar exchange rate fell to 1.3128 from 1.3170.
