UK unemployment rate was unchanged at 3.8% in the three months to May, matched expectations. It was the lowest level since December 1974. Average weekly earnings including bonus grew 3.4% 3moy, much higher than expectation of 3.1% 3moy. Average weekly earnings excluding bonus also grew 3.6% 3moy, above expectation of 3.5% 3moy. In June, jobless claims rose 38.0k, above expectation of 18.9k.Claimant count rate rose 0.1% to 3.2%.
Sterling drops notably earlier today and remains weak despite stronger than expected wage growth. EUR/GBP is extending rise from 0.8472 towards 0.9101 key resistance. Considering loss of upside momentum as seen in 4 hour MACD. We’d expect strong resistance below 0.9101 to limit upside.
