• GBP/CHF trades marginally lower as the Pound weakens against the Franc. 
• UK employment data was robust and led to GBP rising in its key pairs. 
• GBP/CHF fell, however, due to the resilience of the Swiss Franc. 

GBP/CHF edges lower on Tuesday, trading in the 1.1090s as it continues rolling over from the 1.1237 August 19 high. 

The pair weakens despite the Pound Sterling (GBP) strengthening in most of its pairs after the release of UK employment data. Although UK wages softened in July, they remained relatively high at 5.1% (excluding bonuses) and 4.0% (including bonuses). 

In addition the UK Unemployment Rate remains at 4.1% which is below the Bank of England’s (BoE) 4.4% forecast. The Claimant Count fell, showing less people signed on for benefits. Although wages shrank, they remained above inflation. According to some economists the data might have made it slightly harder for the BoE to ease policy, normally a negative factor for the currency. 

“GBP is firmer versus EUR and USD. The UK July labor market data should keep the BoE cautious from easing too aggressively,” said Brown Brothers Harriman in a note after the release. “The policy-relevant private sector average weekly earnings ex-bonuses fell four ticks to a 26-month low at 4.9% y/y but still tracking a little above the BoE’s Q3 projection of 4.8% y/y. ..The swaps market continues to imply almost 50 bps of BOE rate cut by year-end, which seems about right,” the note went on.