Already released this morning, the UK Office for National Statistics issued labour market data.
The employment data reported was varied, the number of new unemployment claims rose by 23.7 thousand in August, which is significantly better than the previous release of 135 thousand claims during July.
Furthermore, data showed that the unemployment rate dropped in line with the market consensus to 4.1 percent (previous 4.2%).
Lastly, official statistics published that average wages in Britain, rose by 4 percent against the market expectation of 4.1 percent – UK wages are at their lowest level this year.
Pound Sterling has been supported by the early release of employment data, moving up against the other currencies in the G10.
Later on this week, the Euro will be tested as markets await the European Central Bank’s monetary policy decision. The ECB is widely expected to cut interest rate after slowing economic growth and weakening inflationary pressures.
Investors are pricing in the ECB to adjust its policy rate and cut interest rates by 25 basis points this month, future rate cuts will be determined by later Eurozone data.
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