Trade Desk Thoughts - U.K. Average Earnings Index

U.K. Average Earnings Index Actual 3.4%, Expected 3.5%, Previous 3.5%

Release Explanation: This release measures the change in the prices that businesses and governments pay for labor. Although, this report does not take into account all sources of household income but the labor cash earnings does accurately reflect the spending ability of domestic households, which is one of the driving forces of economic growth.

Trade Desk Thoughts: Average earnings, including bonuses, rose by 3.4 percent year over year, down from 3.5 percent in July. Analysts expected a 3.5 percent read. Wage inflation is something the BoE takes into account when formulating the monetary policy. A rising trend puts strong pressure on the CPI read.

Forex Technical Reaction: The pound rose 15 pips at the time of the release, and is now trading just under the neutral pivot point (1.7470). Against the euro, the pound gained today 40 pips

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