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Muted market reaction to UK jobs data

The most recent data on the UK labour market continues to be strong on the whole, with the unemployment rate remaining close to a multi-decade low with another decent monthly rise seen in real wages. The headline average earnings number was a little softer than expected in remaining at 3.4%, but the ex-bonus was inline with forecasts and on the whole it represents another solid reading. The data relates to December of last year so there is something of a lag, and the recent decline in industry surveys last month will not be seen until the release in March.

The unemployment rate for the UK remains close to its lowest level in several decades while a rise in job vacancies (inverted axis in 000s) suggests plenty of opportunities for workers who have also benefited from another month of real wage growth.Source: XTB Macrobond   


Due to the lag in this data, it is often not the most market moving, and we’ve seen that this morning with pretty subdued reaction in sterling which has drifted back down near the $1.29 handle. Looking at the bigger picture the pound remains range bound and is seemingly awaiting further clarity on Brexit before embarking on a sustained move, and therefore economic data remains in the back-seat for now. The FTSE has made a soft start this morning for the second day in a row, and trades lower by around 35 points at the time of writing.

GBPUSD remains pretty range bound and not that far from where it traded before the “meaningful vote” on PM May’s deal last month. Price has recently bounced from the lower Bollinger band around 1.2775 while 1.3000 remains a possible level of interest above. Source: xStation     


BREAKING: US industrial production above expectations!
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Chart of the day- Copper (16.08.2022)