The combination of the stronger-than-expected average earnings growth and lower unemployment in the UK contributed to a sharp increase in the GBP/USD . The Sterling appreciated against the US Dollar by 40 base points or 0.31% to reach the 1.2896 mark, and, despite some weakness during the session, managed to finish it near the 1.2890 level.
The ONS reported that average earnings increased 2.1% year-over-year during three months to June, boosted by strong rise of 27% in bonus payments over the course of June alone. Meanwhile, the UK unemployment fell to the lowest level since 1975, edging down to 4.4% in the reported period. However, analysts expect the tepid economic growth to affect jobs further, as wages continued subdued increase.
