Quick Take
Recent UK jobs data released this morning indicated unexpected heat—unwanted by the Bank of England (BOE).
According to Trading Economics, the unemployment rate defied consensus, arriving at 4.2% instead of the anticipated 4.3%. Furthermore, the average earnings, including bonuses, for the past three months were also higher than expected at 7.9%, surpassing the consensus of 7.4%, according to Trading Economics.
This more robust jobs market could fuel inflationary pressures, adding greater significance to the inflation print due tomorrow, Nov. 14. Analysts predict a drop in headline inflation to 4.8% year over year from 6.7%.
Accordingly, the interaction between employment, earnings, and inflation will be a critical economic narrative in the coming months.
The GBPUSD exchange rate peaked at 1.23, while the value of the British pound against Bitcoin is currently oscillating around the £30,000 mark.
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