The combination of the stronger-than-expected average earnings growth and lower unemployment in the UK contributed to a sharp increase in the GBP/USD . The Sterling appreciated against the US Dollar by 40 base points or 0.31% to reach the 1.2896 mark, and, despite some weakness during the session, managed to finish it near the 1.2890 level.
The ONS reported that average earnings increased 2.1% year-over-year during three months to June, boosted by strong rise of 27% in bonus payments over the course of June alone. Meanwhile, the UK unemployment fell to the lowest level since 1975, edging down to 4.4% in the reported period. However, analysts expect the tepid economic growth to affect jobs further, as wages continued subdued increase.
| Historical Data Table | |||||
| Date | 12.04.2017 | 17.05.2017 | 14.06.2017 | 12.07.2017 | 16.08.2017 |
| Actual | 2.30% | 2.40% | 2.10% | 1.80% | 2.10% |
| Forecast | 2.10% | 2.40% | 2.40% | 1.80% | 1.80% |
| Initial Reaction on Main Pairs | |||||
| Open Price | Close Price | % Change | |||
| GBP/USD | 1.2856 | 1.28964 | 0.31% | ||
| EUR/GBP | 0.91147 | 0.90838 | -0.34% | ||
| GBP/CAD | 1.63697 | 1.64225 | 0.32% | ||
| GBP/JPY | 142.632 | 143.067 | 0.30% | ||