LONDON—The euro and sterling rose against the dollar as UK basic pay growth sped up and eurozone employment rose more than expected, underlining the resilience and tightness of the labor market across the region.
A flash estimate of employment showed the number of people with jobs in the eurozone increased by 0.4 percent quarter-on-quarter, twice as fast as expected by economists polled by Reuters, despite slowing economic growth.
In Britain, data showed the pace of growth in basic pay sped up again in the last three months of 2022 even as the labor market cooled. The pace of pay growth in Britain is being monitored closely by the Bank of England (BoE) as it gauges how much higher to raise interest rates….