The UK saw a rise in 2,400 in August, basically within expectations. The downside comes from a revision to July’s number: a smaller than reported: 3.6K instead of 8.6K. The unemployment rate for July remained at 4.9% as expected. Wages rose 2.3% but excluding bonuses only 2.1% – quite mixed.
GBP/USD is bouncing off the 1.32 level but is not going anywhere fast.
The UK Claimant Count Change was expected to rise by 1800 in August following a surprisingly strong drop of 8.6K in July, showing that Brexit was not a disaster. The unemployment rate for July was predicted to remain unchanged at 4.9%. Wages, also for the first post-Brexit month, carried expectations for a rise of 2.1% after 2.4%. Excluding bonuses, earnings were projected to rise by 2.2% after 2.3% beforehand.
GBP/USD traded around 1.32 ahead of the publication. Resistance awaits at 1.3250 and support at 1.3160.
Yesterday, inflation figures came out below expectations for August. While producer prices are higher due to the weaker pound, consumer prices remain depressed.
More: GBP To Gain Support In Q4; Go Long GBP/CHF – Nomura
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