Pound Jumps Most in 17 Months as Traders Eye Tight Labor Market
- The pound is showing signs of recovery from a two-year low
- Traders are dipping back in the market due to low valuations
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The pound staged the biggest rally in 17 months as investors flocked to the beaten-down currency on the back of data showing UK unemployment is the lowest in decades.
Sterling jumped 1.2% to $1.2464 on Tuesday. Gilts slumped and traders added to bets that the Bank of England will raise interest rates at next month’s meeting.