Heads up for UK jobs report due at the bottom of the hour

Author: Justin Low | Category: News

UK February wages growth and unemployment rate are due at 0830 GMT


Focus will be on wages, with the average weekly earnings expected to rise to +3.0% from the prior +2.8%. The unemployment rate is expected to hold steady at 4.3%, but any surprise in wages should easily outweigh sentiment on a move in the unemployment rate.

If wages growth does indeed come in at +3.0%, it would be the highest since September 2015 - so that's something that sterling bulls will shout about.

But in the macro picture, real wages are just only starting to turn positive back in the UK - and consumers are still feeling the strain, as evident by Q1 spending and consumption data thus far.

While it may not yet be enough to relieve the pressure on the UK consumer, rising wages is still a good sign nonetheless and it will only serve to convince the BOE that a May rate hike is well and truly justified.

And given the recent momentum in the pair, I reckon any dips would be bought up should the data miss towards the downside.

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