14th September, AtoZForex – Following yesterday’s disappointing inflation data from the UK, the market has been waiting for today’s UK labor earnings data. Considering that another disappointing report is likely to sink the pound. Yet, the UK labour data held steady at 4.9% as projected by the analysts.
UK unemployment rate remains unchanged
– The UK unemployment stayed at 4.9% for the three months to the end of July
– The UK unemployment rate was forecasted to remain at 4.9% during the period
– UK claimant count rose to 2.4k between July to August, against the forecast of 1.7k
– UK’s average earnings index 3m/y s came in at 2.3%, beating the 2.1% expectation
UK labor not affected by Brexit
On the drop of the UK unemployment release the FTSE 100 rebounds, while the pound rose. It reveals that the UK’s labor market was not affected much by the Brexit vote in June, as the UK labor remained steady at 4.9 percent and the jobs creation index rose. Nevertheless, there are signs that there is a slowed growth in wages, which can signal a tough period ahead for UK households. This is due to the Brexit vote, which drove the pound’s value down and consequently the imported goods prices went up, affecting the UK households.
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