This morning we have the release of unemployment and average earnings figures for the U.K in a slight change to the usual schedule, as these figures have been released on Wednesday historically for many years.
They have been altered by the ONS (Office of National Statistics) have made the move as they would prefer unemployment figures to be released the day before Prime Ministers questions to give Parliamentarians the chance to review the figures before they are debated.
This should in turn mean that the release is more valuable as there is greater time for ministers to understand and digest the figures before they go ahead and discuss them.
This now means that inflation data will be moving to Wednesdays, so will move over to tomorrow, the ONS want to avoid having two highly topical and important economic data releases coming out on the same day so the decision was made to swap the two around and this will be the case now on an ongoing basis.
A positive average earnings figure this morning could push GBP/EUR above the 1.16 mark for the first time since June 2017 and we may also see further multi month highs for the Pound against many major currencies.
The reason for this is that average earnings figures are one of the key figures being looked at regarding an interest rate hike happening for the U.K in May and as long as average earnings (how much the general consumers wages are going up or down) has not dropped off and moved back away from inflation then I would think that a May interest rate hike would virtually be nailed on and the Pound will benefit a little off of the back of this.
With inflation due tomorrow and retail sales on Thursday there is plenty for the Pound to get stuck into for the rest of the week, I still feel we will see a slight rise in the value of Sterling as the week goes on, unless there are any political issues that cause uncertainty for Sterling exchange rates.
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