The UK saw wages slowing down to an annual pace of 2.6% against 2.8% expected. Excluding bonuses, wages rose by the same scale of 2.6% instead of 2.7% predicted. The unemployment rate remained unchanged at 4.8%.
Jobless claims plunged by no less than 42.4K, but this could be due to some yearly adjustment. The figure for December was also revised to a whopping drop of 20.5K. This is the first report for 2017 and there may have been a change in calculations.
GBP/USD slips to 1.2430. Update: the pair extends its falls below 1.2420. Here is the 30-minute chart of pound/dollar:
The UK was expected to report a small rise of 0.8K in jobless claims, the Claimant Count Change, for January. A surprisingly positive drop of 10.1K was seen in December (before revisions). The unemployment rate was predicted to remain unchanged at 4.8%. Wages were projected to continue advancing by 2.8% in December. Also wages excluding bonuses were forecast to rise by 2.7%.
GBP/USD traded around 1.2450 ahead of the publication. Support awaits around 1.2415 and resistance at 1.2540. Yesterday, the UK reported lower than expected inflation data.
In the US, the Trump administration remains embroiled in scandals regarding Russian ties. However, what moves markets is the FED once again: Yellen provided ammunition for dollar bulls with an upbeat assessment of the economy and discussed rate hikes.
Here is the pound/dollar chart:
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