When is the UK jobs report and how could it affect GBP/USD?

Haresh Menghani FXStreet

UK Jobs report overview

The UK labor market report is expected to show that the average weekly earnings, including bonuses, in the three months to August rose by 3.9% as against 4.0% growth recorded in the previous month. Excluding bonuses, the wage growth is seen ticking lower to 3.7% during the reported period from 3.8% previous. Meanwhile, the number of people seeking unemployment-related benefits is forecasted to come in at 27.9K in August and the ILO unemployment rate is expected to hold steady at 3.8%.

How could the data affect GBP/USD?

As Yohay Elam, FXStreet's Analyst explains – “An upbeat advance in pay will likely have a more significant positive effect if the UK and the EU are closer to a deal, and GBP/USD already enjoys an uptrend. If headlines are pessimistic, sterling may be unable to benefit from upbeat economic developments.”

“The same goes for a disappointing outcome. A substantial slowdown in wage growth may exacerbate cable's fall if headlines are pessimistic. However, if the market believes that a Brexit deal that can pass parliament is imminent – sterling will likely shrug off weak data,” he added further.

Key Notes

UK jobs report preview: GBP/USD set to react to figures that go with the Brexit mood

GBP/USD forecast: Bulls trying to regain control amid hopes of a Brexit deal, UK jobs report eyed

GBP/USD: Options market turns bullish on Sterling for first since January 2018

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).

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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