Latest data released by ONS - 18 February 2020
- Prior +3.2%
- Average weekly earnings (ex bonus) +3.2% vs +3.3% 3m/y expected
- Prior +3.4%
- ILO unemployment rate 3.8% vs 3.8% expected
- Prior 3.8%
- Employment change 180k vs 148k expected
- Prior 208k
- January jobless claims change 5.5k
- Prior 14.9k; revised to 2.6k
- January claimant count rate 3.4%
- Prior 3.5%; revised to 3.4%
A slight miss in wages data but the unemployment rate continues to reaffirm that labour market conditions remain tight in the UK economy. The pound should not see much reaction in the aftermath of the data here as there are bigger fish to fry in the coming days.
Looking at the details, the employment rate rose to a record high of 76.5% following the +180k change in employment. Meanwhile, in real terms, wages (ex bonus) was at +1.4% in the three months to December - the weakest since April 2019.
Cable keeps tight around 1.2990-00 for now after a brief drop to 1.2971 in the hour before, with the 200-hour moving average limiting losses for now.
