James Smith, developed markets economist at ING, suggests that the key takeaway from the latest UK jobs report is the continued strength in wage growth.

Key Quotes

“At 3.4%, regular pay is growing close to its fastest rate since the financial crisis, and this comes as firms in certain sectors are finding it harder to attract/retain staff. Surveys indicate that skill shortages are particularly acute in the construction, IT and hospitality industries, and this has seen rates of pay outpace other sectors.”

“In principle, there are few reasons to expect this trend to fade imminently, although amid all of the uncertainty, we'd note the number of people on the unemployed claimant count has begun to exceed the number of job vacancies - perhaps a sign of some weakness ahead.”

“Overall though, we don’t expect a substantial rebound in economic growth over the next few months. The headwinds facing businesses have not faded, and many will need to continue building up their preparations for a possible ‘no deal’ Brexit later in the year. In many cases this will be very costly, and therefore will continue to weigh down overall investment.”

“For that reason, we think it is now pretty unlikely that the Bank of England will hike rates this year – unless some form of deal is approved earlier than most people expect.”

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD trims early gains, dangerously close to 1.1200

The positive tone of the pair fades in the American afternoon as demand for the dollar resumes, despite softer-than-expected US data. All eyes on the Fed this week.

EUR/USD News

GBP/USD extends decline, pierces 1.2550

Despite moving in slow-motion, GBP/USD decline is continuous with the pair trading at levels last seen in January, amid political uncertainty weighing on Sterling.

GBP/USD News

USD/JPY remains directionless above mid-108s on Monday

The USD/JPY pair is struggling to make a decisive move in either direction on Monday as the slightly upbeat market sentiment doesn't allow the safe-haven JPY to gather strength.

USD/JPY News

Gold remains on track to close with small losses below $1340

The XAU/USD pair, which closed higher on the weekly chart for the fourth straight time last week, is fluctuating in a relatively tight range on Monday amid a lack of significant fundamental drivers that had a lasting impact on the greenback's market valuation or the risk perception.

Gold News

Gold: Signs of bullish exhaustion ahead of the Fed

Gold's rally seems to have run its course with signs of bullish exhaustion emerging on technical charts ahead of Wednesday's FOMC (Federal Open Market Committee) rate decision.

Read more

Majors

Cryptocurrencies

Signatures