GBP/CAD flat near 2-week high after UK wage growth data

The GBP/CAD currency pair was little changed near a two-week high of 1.8035 on Tuesday, after data showed that UK core wage growth had been the slowest since the three months to June 2022.

Regular pay, excluding bonuses, rose 4.9% year-on-year to GBP 648 per week in the three months to August, after a 5.1% surge in the prior period.

Average weekly earnings, including bonuses, rose 3.8% year-on-year to GBP 693 per week in the three months to August, or the slowest growth since the three months to November 2020.

The latest figures came in line with market consensus and will likely be welcomed by the Bank of England, as it considers its next interest rate cut.

The BoE left borrowing costs on hold at its September policy meeting, as it wanted to see further indications that inflation pressures were easing.

The official UK CPI inflation numbers for September are due to be released tomorrow.

Meanwhile, market players will be also looking into Canadian CPI inflation data for September due out later today.

The median CPI inflation probably remained steady at 2.3% in September, according to market consensus. It has been the lowest rate since April 2021.

The trimmed-mean core inflation rate, the Bank of Canada’s preferred measure of underlying inflation, probably rose to 2.5% in September from 2.4% in August. The latter has been the lowest rate since April 2021.

As of 7:08 GMT on Tuesday the GBP/CAD currency pair was inching up 0.07% to trade at 1.8021.