UK employment data was generally positive which saw the Pound rally a little this morning. The rate of unemployment was unchanged from a month ago at 5.1%, maintaining a decade-low rate. This prompted ONS statistician Nick Palmer to comment on the sluggish growth in people’s earning. “While the employment rate continues to hit new highs and there are more job vacancies than ever previously recorded, earnings growth remains subdued and markedly below the recent peak of mid-2015,” Mr Palmer said. Not only this, pay also increased by 2.0% during the same period which was similar to growth rates between September to November 2015.
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This was however overshadowed by the continued strength of the USD. US manufacturing production output rose in January, a sign the industry was starting to stabilize. Coming in at 0.9%, it surpassed the expected forecast of 0.3%. Factory production was mainly boosted by the biggest gain in the output of consumer goods in both durables and nondurables goods.
Focus this evening turns to the FOMC minutes and then Australian employment data due for release overnight - expected to come out at 5.8%.
Latest FX news by Ian Tang