Latest data released by ONS - 17 July 2018
- Prior +2.5%; revised to +2.6%
- Earnings ex-bonus +2.7% vs +2.7% expected
- Prior +2.8%
- ILO unemployment rate 4.2% vs 4.2% expected
- Prior 4.2%
- Employment change 137k vs 115k expected
- Prior 146k
- June jobless claims change +7.8 kvs -7.7k prior
- Claimant count rate 2.5% vs 2.5% prior
The key stuff are in line with expectations, with employment change slightly better than estimates as well. The employment rate rises to a record 75.7% on the back of that. There's also a slight positive revision on wages for the prior reading.
Looking into details, for the month of May alone showed that average weekly earnings stood at +2.5% and that's the weakest growth since November last year. Similarly, the ex-bonus reading for May alone was +2.6% and is the weakest since January. Meanwhile, the unemployment rate continues to hold at its lowest level since 1975 - so that will give something for the BOE to cheer about.
Looking through, I don't see any specific details that will derail the BOE's rate hike plans in August and we're seeing sterling hit session highs on the back of that.
GBP/USD up to a high of 1.3262 while GBP/JPY touches a high of 149.05 on the day on the back of the release here.
