UK wage growth hits 11-year high; GBP remains subdued

9:27 AM 16 July 2019

Summary:

  • UK wage data beats forecasts but jobless claims rise

  • Unemployment rate remains near multi-decade low

  • GBP under pressure; EURGBP at 6-month high 

 

The latest employment figures have given mixed messages on the health of the UK labour market, with both jobless claims and wages rising. The main takeaway is the larger than expected rise in wages with the increase coming in at the fastest pace in over a decade. Given that inflation for the same month, as measured by the CPI, rose by 2.0% the figures represent a sizable increase in real wages for workers. 

Start investing today or test a free demo

Open real account TRY DEMO Download mobile app Download mobile app
 

Looking at the data itself the average weekly earnings came in at +3.4% vs +3.1%  for the 3 month period (annualised) to May. The prior was revised a little higher to +3.2% from +3.1% beforehand. Weekly earnings excluding bonuses came in at +3.6% vs a consensus forecast of +3.5% and a prior reading of +3.4%. One less positive aspect of the release was the rise in jobless claims for June, which rose to 38.0k from 24.5k last time out - a figure itself which was revised up from 23.2k.    

Wage growth in the UK has picked up of late, with the overall rise also supported by an increase in earnings for those working in the manufacturing sector. Source; XTB Macrobond

 

In terms of market reaction it’s been fairly muted after earlier the pound fell to a 6-month low against the Euro and sterling is not far from its weakest level of the year versus the US dollar. The currency has been in a persistent downtrend for the past couple of months with last week’s depreciation against the Euro making it 10 consecutive weekly declines and the longest such run on record! What is worth noting about the drop is the slow and steady nature of it, with no real sharp moves just a persistent move lower. This reflects the lack of any new obvious negative catalysts and more shows the continued headwinds to the currency due to the ongoing political uncertainty.  

The EURGBP is on an unprecedented run higher, with last week’s gains making it 10 in a row - the longest run of advances on record. This morning price has broken above the 0.90 handle as the market hits a fresh 6-month high.  Source: xStation 

 

 

 

Share:
Back
Xtb logo

Join over 935 000 XTB Group Clients from around the world

The financial instruments we offer, especially CFDs, can be highly risky. Fractional Shares (FS) is an acquired from XTB fiduciary right to fractional parts of stocks and ETFs. FS are not a separate financial instrument. The limited corporate rights are associated with FS.
This page was not created for investors residing in Brazil. This brokerage is not authorized by the Comissão de Valores Mobiliários (CVM) or the Brazilian Central Bank (BCB). The content of this page should not be characterized as an investment offer in Brazil or for investors residing in that country.
Losses can exceed deposits

We use cookies

By clicking “Accept All”, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts.

This group contains cookies that are necessary for our websites to work. They take part in functionalities like language preferences, traffic distribution or keeping user session. They cannot be disabled.

Cookie name
Description
SERVERID
userBranchSymbol cc 2 March 2024
test_cookie cc 25 January 2024
adobe_unique_id cc 1 March 2025
__hssc cc 8 September 2022
SESSID cc 2 March 2024
__cf_bm cc 8 September 2022
intercom-id-iojaybix cc 26 November 2024
intercom-session-iojaybix cc 8 March 2024

We use tools that let us analyze the usage of our page. Such data lets us improve the user experience of our web service.

Cookie name
Description
_gid cc 9 September 2022
_gat_UA-98728395-1 cc 8 September 2022
_gat_UA-121192761-1 cc 8 September 2022
_gcl_au cc 30 May 2024
_ga_CBPL72L2EC cc 1 March 2026
_ga cc 1 March 2026
__hstc cc 7 March 2023
__hssrc

This group of cookies is used to show you ads of topics that you are interested in. It also lets us monitor our marketing activities, it helps to measure the performance of our ads.

Cookie name
Description
MUID cc 26 March 2025
_omappvp cc 11 February 2035
_omappvs cc 1 March 2024
_uetsid cc 2 March 2024
_uetvid cc 26 March 2025
_fbp cc 30 May 2024
fr cc 7 December 2022
_ttp cc 26 March 2025
_tt_enable_cookie cc 26 March 2025
_ttp cc 26 March 2025
hubspotutk cc 7 March 2023

Cookies from this group store your preferences you gave while using the site, so that they will already be here when you visit the page after some time.

Cookie name
Description

This page uses cookies. Cookies are files stored in your browser and are used by most websites to help personalise your web experience. For more information see our Privacy Policy You can manage cookies by clicking "Settings". If you agree to our use of cookies, click "Accept all".

Change region and language
Country of residence
Language