UK wages rise 2.9% missing estimates, GBP/USD little changed
- The UK wages excluding bonuses rose by 3.2% YoY vs. +3.3% expected.
- The UK wages including bonuses rose by 2.9% YoY vs. +3.0% expected.
- The UK unemployment rate steadies at 3.8% in December.
The Office for National Statistics (ONS) showed on Tuesday, the UK’s average weekly earnings, excluding bonuses, arrived at 3.2% 3Mo YoY in December versus 3.4% last and 3.3% expected while the gauge including bonuses came in at 2.9% 3Mo YoY in December versus 3.2% previous and 3.0% expected.
The Kingdom’s official jobless rate steadied at 3.8% in Dec, while the claimant count change showed a much smaller-than-expected increase.
The number of people claiming jobless benefits rose by 5.5K in January, against expectations +22.6K and +2.6K (revised up from +14.9K) seen previously. The claimant count rate remained unchanged at 3.4% vs. 3.4% previous.
About UK jobs
The UK Average Earnings released by the Office for National Statistics (ONS) is a key short-term indicator of how levels of pay are changing within the UK economy. Generally speaking, the positive earnings growth anticipates positive (or bullish) for the GBP, whereas a low reading is seen as negative (or bearish).
FX implications
GBP/USD met fresh supply and moved a few pips below the 1.30 handle on disappointing UK wage growth numbers. The further recovery attempts, however, look unlikely amid risk-aversion led broad-based US dollar strength and increased Hard Brexit fears.
At the press time, the cable is back around the 1.3000 level, modestly flat on the day.
GBP/USD levels to watch
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
