UK employment figures show 147K new jobs, beating expectations and supporting the British Pound amid steady wage growth.
The British Pound (GBP) rebounded to near 218.55 against the Japanese Yen (JPY) in European trading on Tuesday, halting a three-day decline. The move followed UK labor market data showing 147K jobs created in the three months to May, up from 100K previously, while the ILO Unemployment Rate held at 4.9%, below the expected 5%.
Average Earnings Excluding Bonuses remained steady at 3.4% Year-on-Year (YoY), matching forecasts, though wage growth including bonuses cooled to 4.3% YoY from 4.4%. The data eased concerns over further Bank of England (BoE) interest rate hikes, as cooling wage pressures reduce inflationary risks.
Investors now await Wednesday’s UK Consumer Price Index (CPI) data for June, with headline and core inflation expected to ease to 2.7% and 2.5% YoY, respectively. Japanese National CPI data for June is due Friday, with core inflation forecast at 1.6% YoY.