UK: Focus on labour market report - SocGen

Kit Juckes, Research Analyst at Societe Generale, and points out that we have the UK labour market data for May today and average weekly earnings growth is almost certain to have slowed from April’s 2.1% rate, just because of the way it is calculated.

Key Quotes

“That 2.1% is the average of three months, over the same period a year ago, and since the monthly figure for April was 1.2%, down from 2.4% in March, the 2-month y/y is 1.7%. The market’s guess is 1.8% for the May data, with 1.9% ex bonuses. SG is 2-tenths lower for both. It’s hard to see anything here that helps the pound today and after EUR/GBP broke 0.8850, the path to the low 0.90s seems clear.”