Wage rises are certainly sliding: it’s only 2.4% y/y with bonuses or 2% excluding bonuses. The sliver lining is that the unemployment rate dropped to 5.2%, better than expected. Jobless claims rose more than expected, 3.9K in November.
GBP/USD is struggling on low ground. It seems that this outcome was anticipated if not leaked.
The United Kingdom was expected to report an annual rise of 2.5% in wages (bonuses included) in October from 3% seen beforehand. Excluding bonuses, a drop from 2.5% to 2.3% was on the cards. The unemployment rate was predicted to remain at 5.3% while jobless claims (Claimant Count Change) carried expectations for a small rise of 1.5K for November.
GBP/USD dropped to below 1.5010 towards the publication, suffering from a stronger USD and perhaps also anticipating a disappointment.
The Bank of England recently said that the rise in wages is “flattening”, pouring cold water on one of the strong spots of the British economy. Yesterday’s inflation numbers came out as expected.
Today’s big event is of course the decision by the Federal Reserve: a historic rate hike.
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