The most recent data on the UK labour market continues to be strong on the whole, with the unemployment rate remaining close to a multi-decade low and another decent monthly rise seen in real wages. The headline average earnings number was a little softer than expected in remaining at 3.4%, but the ex-bonus was inline with forecasts and overall it represents another solid reading. The data relates to December of last year so there is something of a lag, and the recent decline in industry surveys last month will not be seen until the release in March.
Due to the lag in this data, it is often not the most market moving, and we’ve seen that this morning, with a pretty subdued reaction in sterling which has drifted back down near the $1.29 handle since the release. Looking at the bigger picture the pound remains range bound and is seemingly awaiting further clarity on Brexit before embarking on a sustained move, and therefore economic data remains in the back-seat for now. The FTSE has made a soft start this morning for the second day in a row, and trades lower by around 35 points at the time of writing.
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