UK unemployment at 42-year low fails to spur wage pickup

Today's markets

  • GBP - Average Earnings Index 3m/y: 2.1%
  • USD - PPI m/m
  • USD - Crude Oil Inventories

The Pound slipped earlier this morning after a worse than expected Wage Growth reading, however losses were parred as we received a surprise reading from the headline Unemployment Rate. The gap between CPI and Average Earnings continued to widen as wages decreased unexpectedly to 2.1%, whilst inflation yesterday shot up to 2.9%. However, losses were capped as the UK released an extremely bullish Unemployment Rate Figure. Unemployment dropped to 4.3%, its lowest reading in 42 years.

Across the pond, the US release two pieces of high tier data today. Firstly, the US Producer Price Index, where markets gain an insight into the States inflation health. Shortly after, US Crude Oil is forecast to show a decline of 0.5M barrels to 4.1M. Hurricane Irma would not have affected this reading as these figures will be taken from August.

 Tomorrow's markets

  • AUD - Employment Change
  • GBP - Monetary Policy Summary
  • USD - Unemployment Claims

Arguably the biggest day of the week tomorrow with the release the Bank of England rate decision and vote. No monetary policy changes are expected, however the vote is expected to change to 7-2 in favour of leaving rates on hold. From the States, we have a Key Inflation reading in the form of CPI and the Weekly Unemployment Claims figure.