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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