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UK wages jump 2.9%, strongest since 2009 – GBP follows

Better than expected data from the UK on most fronts: average  earnings rise 2.9%, significantly better than 2.5% expected and this also comes with upwards revision of last month’s number from 2.4% to 2.6%. Excluding bonuses, a rise of 2.9% was also recorded, and this came out as expected. More good news came from the unemployment rate which surprised with a slide to 5.5%. The only disappointment came from the rise in jobless claims, +1.2K, but it was partially countered by an upwards revision.

All in all, the much needed rise in wages, the biggest jump since 2009, and the drop in unemployment certainly cheer the pound.  GBP/USD is on the rise above 1.5380.

GBPUSD Technical chart rising with wages September 16 2015

The UK was expected to report a gain of 2.5% in average weekly earnings in July after 2.4% in June. Excluding bonuses, a rise from 2.8% to 2.9% was on the cards. The unemployment rate was expected to remain unchanged at 5.6%. Claimant Count Change (jobless claims) for August were predicted to drop by 5K, similar to July’s number.

GBP/USD has been trading around 1.5350 towards the publication, rising within the lower range it traded in during recent hours.

With the job market already  firing on most cylinders, the focus has moved to  wages: the tightening job market does not translate to higher salaries.

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Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.