ONS data released at 9:30am, showed that the unemployment rate held steady at 6%, which was also accompanied surprisingly by an increase in wage growth. There were 30.79 million people in work. This was 112,000 more than for April to June 2014 and 694,000 more than for a year earlier.
The Bank of England has held interest rates at the record low of 0.50%, with an emphasis on the economic slack, and more specifically the wage growth. These latest releases show improving employment conditions, which signal the UK economy could be ready for monetary policy tightening. Previous expectations had been for potentially Q4 of 2015; however the markets view shifted to the second half of 2015.
Redundancies have more than halved since the financial crisis began, a positive figure for the UK economy.
Following the release sterling rallied in the FX market from session lows of 1.5885 to 1.5934, the BoE Quarterly Inflation Report at 10:30am should provide direction for the currency.