18 Feb 2016
UK: Mixed labour data – BBH
Research Team at BBH, notes that the UK reported mixed January labor market data.
Key Quotes
“The unemployment rate was 5.1% vs. 5.0% expected, while average weekly earnings rose 1.9% y/y, as expected. Jobless claims fell 14.8k vs. an expected 3k drop. Wage pressures remain subdued, and so the BOE is likely to find it hard to justify lift-off near-term. Indeed, the Q4 short sterling futures continue to price in a slight chance of a rate cut. This will do sterling no favors. Indeed, after yesterday’s move lower, cable is on track to test the cycle low near $1.4080 from January 21.”
Key Quotes
“The unemployment rate was 5.1% vs. 5.0% expected, while average weekly earnings rose 1.9% y/y, as expected. Jobless claims fell 14.8k vs. an expected 3k drop. Wage pressures remain subdued, and so the BOE is likely to find it hard to justify lift-off near-term. Indeed, the Q4 short sterling futures continue to price in a slight chance of a rate cut. This will do sterling no favors. Indeed, after yesterday’s move lower, cable is on track to test the cycle low near $1.4080 from January 21.”