Better than expected data from the UK on most fronts: average earnings rise 2.9%, significantly better than 2.5% expected and this also comes with upwards revision of last month’s number from 2.4% to 2.6%. Excluding bonuses, a rise of 2.9% was also recorded, and this came out as expected. More good news came from the unemployment rate which surprised with a slide to 5.5%. The only disappointment came from the rise in jobless claims, +1.2K, but it was partially countered by an upwards revision.
All in all, the much needed rise in wages, the biggest jump since 2009, and the drop in unemployment certainly cheer the pound. GBP/USD is on the rise above 1.5380.
The UK was expected to report a gain of 2.5% in average weekly earnings in July after 2.4% in June. Excluding bonuses, a rise from 2.8% to 2.9% was on the cards. The unemployment rate was expected to remain unchanged at 5.6%. Claimant Count Change (jobless claims) for August were predicted to drop by 5K, similar to July’s number.
GBP/USD has been trading around 1.5350 towards the publication, rising within the lower range it traded in during recent hours.
With the job market already firing on most cylinders, the focus has moved to wages: the tightening job market does not translate to higher salaries.
More: trading the UK wages with GBP/USD
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