UK real wages fall at record pace

Today's Average Earnings Index showed a fall in real wages at a record level as inflationary pressures and the cost of living crisis continue to reduce buyer spending power. This further highlights the importance of a suitable strategy by the Bank of England and government who may attempt to normalize the economic situation despite increasing recession concerns. The economy continues to be in a difficult spot as it remains stuck between serious supply and logistics concerns and attempting to rebound from historically low interest rates. Meanwhile, employment figures showed a slow decrease compared to the previous three month period which corresponded to a slight increase in the unemployment rate. All things considered, this is troubling news as it could indicate a slowdown in the job market which coupled with rising prices may lead to a serious drop in demand and ultimately impact most aspects of the economy.

Oil prices remain under pressure amid growing demand concerns

Oil prices continue to be under pressure after disappointing Chinese data earlier this week added to the increasing global economic slowdown fears which have been a key theme in markets for quite some time. The prospect of a slowdown in demand and overall economic activity has brought oil prices down several percentage points with WTI trading around while Brent is back below $95 as traders await stockpile reports. The prices of both these commodities are testing important price reaction areas and the next few days could  be critical in determining the upcoming movements as the market remains quite volatile as uncertainty dominates. Furthermore, there are several important macro events that could have an impact on commodity prices including the Fed decision expected for tomorrow evening where investors will be able to get an idea on what the US central bank intends to do to contain rampant inflation and ease potential concerns.