UK wage growth accelerates – GBP/USD ticks up

Average Hourly Earnings rise by 1% in the UK, better than expected for the month of September. However, the unemployment rate remained at 6%, weaker than a drop to 5.9% that was predicted. Claimant Count Change for October dropped by 20.4K jobs,  slightly below predictions for 24.9K. All in all, it seems that the  closely watched wage data has the upper hand against the other figures, which gained more traction in the past.

GBP/USD is ticking up, partially erasing the slide that came before the publication, and trades at 1.5915.

Update:  GBP/USD falls as BOE cuts inflation forecasts

Markets are awaiting another important event: the release of the quarterly inflation report. Governor Mark Carney and his colleagues will lay out their views on  inflation, employment and perhaps provide hints about the  timing of the rate hike. This is due at 10:30 UK time, or 9:30 GMT.

A rise in salaries, which lagged so far, is certainly good news for Brits and eventually for the British pound, as pay raises trigger price rises and then higher interest rates.

Recent technical analysis:  GBP maintains broader downside pressure in medium term but triggers correction