The Pound Sterling (GBP) has softened in line with the EUR through the overnight session, Scotiabank’s Chief FX Strategist Shaun Osborne notes.

GBP slips back from Monday’s peak

“UK data reports were mixed—wage growth picked up again in November but the 5.6% increase in Average Weekly Earnings was a bit below consensus. Payrolls fell a larger than expected 47k in December, however, which may be the data point the BoE homes in on at the February 6th policy decision.”

“GBP has slipped back from yesterday’s intraday peak near 1.2345 but is maintaining a minor uptrend on the USD that has developed over the past week. Support is 1.2220 and 1.2185 (firmer).”