ING: If wage data remains weak, the GBP against the euro may weaken.

Gold Ten Data, November 10 — Chris Turner of ING Group stated in a report that if the data released on Tuesday shows that UK wage growth has further slowed, it will support the case for the Bank of England to cut interest rates in December, which could lead to a decline in the pound. Turner believes that the market’s expectation of a 25 basis point rate cut by the Bank of England in December has been underestimated. According to data from LSEG, the market currently prices in a 57% probability of such an outcome. Turner pointed out that the labor market data released on Tuesday could influence these expectations. He believes that a further slowdown in wage growth will give the Bank of England more confidence that inflation’s persistence is not as strong as initially thought.