Sterling is strengthening. Economists at ING analyze GBP outlook.
Wage data actually good news for BoE
Wage growth slowed less than expected in September from 8.1% to 7.9% (exp. 7.3%). The unemployment figures should be discounted due to data quality issues, but in general, the report points to an ongoing cooling in the job market. This looks like good news for the Bank of England and we think private sector wage growth could slow to around 4.5% by next summer.
EUR/GBP is heavily testing 0.8700 but will struggle to make a break lower if ZEW shows some improvement.
