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).
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