Unemployment in the United Kingdom remained unchanged for the month of December according to the Office for National Statistics. The report cited a 5.10% rate in unemployment for the month of December, unchanged from the previous month while missing estimates of 5.00%. Wages, including bonuses, met expectations, falling from November’s 2.1% to 1.9% for December whereas wages without bonuses rose 2%, above November’s 1.9% and forecasts of 1.8%. With the wage growth still far from the Bank of England’s goal of 3%, the central bank is in no rush to adjust policy and raise rates as evidenced by existing projections. Improvements in employment are a strong sign, but inflation near zero is keeping a lid on earnings growth. The UK Pound rose modestly versus the Euro over the session, with the EURGBP pair closing at 0.7781.
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Daily Analysis - 18/02/2016