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GBP down 0.5% after soft UK wage data

The ONS delays the release of UK unemployment figures until October 24th..



As expected, the Pound is trading in the red today after softer than expected UK wage numbers. Wages including bonuses, rose 8.1%, which was below the 8.3% forecast and down on July's 8.5% figure. The jobs numbers have been delayed a week, which might have been a good thing today, otherwise we could have seen the Pound devalue further. 

The UK labour market continues to cool and this is good news in terms of inflation, as this variable is the main driver in keeping inflation high. The data shows that wage growth is slowing quickly enough for the MPC to keep interest rates as they are. This is a GBP negative scenario, which is why £ has fallen today.

Onto the UK inflation rate tomorrow for more volatility..