UK labour data dominated yesterday’s markets as Average Earnings, Claimant Count Change and the unemployment rate were all released. The UK’s labour market continued to show resilience after the shock Brexit result, with unemployment remaining sticky at an 11-month low of 4.9%. These average readings suggest that the UK’s economy may survive the Brexit relatively undamaged. Average Earnings posted a better than expected 2.3%, whilst the Claimant Count figure registered at 2.4k.
In other news, Republican presidential nominee, Donald Trump has opened a five-point lead over rival Hilary Clinton in the state of Ohio. Hilary Clinton has come under pressure over comments about Trump’s supporters and concerns about her health after she took a stumble and appeared to faint at a 9/11 memorial service.
Today will be a busy day of data, starting with Australian employment figures. We can expect the release of UK Retail Sales, Eurozone CPI and the Bank of England interest rate decision. We expect little action from the BoE, however there have been indications that the BoE is prepared to cut again. Despite this, recent positive data from the UK means that any further cut is highly unlikely at this meeting.