UK wages rise only 2.4% – GBP/USD falls
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UK wages rise only 2.4% – GBP/USD falls

Wages in the UK are rising in a slower pace than expected: 2.4% instead of 2.8% expected. Excluding bonuses, the gain is 2.8%, within predictions. The unemployment rate comes in at 5.6%, as expected. Jobless claims for July fall 4.9K, and that’s better than expected.

GBP/USD is quickly losing ground. The immediate reaction was a fall all the way to 1.5538, and this was followed by a bounce to 1.5550.

The UK was expected to report a rise of 2.8% in wages in June after 3.2% in July.  Excluding bonuses were expected to advance 2.7%. Pay is receiving growing attention. The unemployment rate was expected to remain at 5.6% also in July. Claimant Count Change, aka jobless claims, were predicted to rise by 1.4K in July, following a rise of 7K beforehand.

GBP/USD was trading a bit higher at 1.56  towards the  publication.

The pound was hit by the BOE last week. Carney and co. did not seem in a hurry to raise rates  anytime soon.

The employment situation looks positive, but inflation is weak. This is a similar picture to what we are seeing in the US.

More:  EUR/USD: Relief Rally?; GBP/USD: Trade The Range – JP Morgan

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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.