Key points:

• UK wage growth could spur Bank of England to start talking about rate cuts。
• UK unemployment remains unchanged, while hiring falls for 18 consecutive cycles。
• Bank of England governor Andrew Bailey will be in focus later today。UK Labour Market Report - January 2023

On Tuesday, the British labor market was under the spotlight。Average wages, employment changes and unemployment in the UK have attracted investor interest。Weaker wage growth and labor market conditions may reduce disposable income。Falling disposable income could dampen consumer spending and slow demand-driven inflation。

In November, average wages (including bonuses) increased 6.5% (3M / Yr), compared to an increase of 7 in October..2%。Economists forecast an average salary (including bonuses) of 6.8%。Unemployment remains at 4..2% unchanged, employment increased by 73,000。Economists predict 50,000 more jobs, 4 jobless.2%。

According to the Office for National Statistics:

Estimated job openings reduced by 49,000 in three months。Recruiting positions decline for 18 consecutive cycles。Number of registered employees decreased by 24,000。The Impact of Bank of England Monetary Policy

Weak expected wage growth data could inspire the Bank of England to start talking about a rate cut。Wage growth has been a problem for the Bank of England。Strong wage growth has boosted consumer spending and demand-driven inflation, forcing the Bank of England to take a more hawkish interest rate path.。

GBP / USD reaction to UK wage growth

GBP / USD rises to 1 ahead of UK jobs data.A high of $27,290 before falling to 1.Low of $26,765。

However, in response to these figures, GBP / USD rose to 1..$26,830 high, then slipped to 1.Low of $26,597。

On Tuesday, GBP / USD fell to 1.$26,679, down 0.46%。