U.K. employment data
- Average earnings plus bonuses (Jan), fact 3.4%, forecast 3.2%.
- Claimant count change (Feb.), fact 27.0K, forecast 13.1K.
- Unemployment rate (January), fact 3.9%, forecast 4.0%.
An employment report in the UK for January was very positive. A positive factor in the report was the growth of wages and the reduction of unemployment to historical lows. It is worth to highlight the average level of wages with bonuses, which continues to remain near nine-year highs. At the same time, the last indicator showed a slight slowdown after a six-month growth. The negative note of the report was the growth of applications for unemployment benefits, which approached the annual highs and continues to maintain an upward trend.
Fig. 1. U.K. claimant cout change chart
As a result, an employment report in the UK in January can be called restrained positive. But while the dynamics of the British pound remains extremely restrained due to political uncertainty around Brexit. Therefore, the dynamics of the British will be limited to the flat and the expectation of data on Brexit. The GBP/USD pair remains limited to the side channel from 1.3300-30 to 1.3200.
Fig. 2. GBP/USD chart. Current price – 1.3270
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Hanzenko Anton
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