UK unemployment report preview:

Another post-referendum unemployment report will be published today, however, today’s report may not be a major market mover for the pound as the focus for the day is on FOMC interest rate decision. As of now, the economy seems to be working fine but the focus has turned to the probable future relations between the UK and the rest of the members of the European Union.

One of the key measures of economic well-being is the unemployment report, which will be released from the United Kingdom today at 9:30 GMT. The reports released so far have shown not much of an impact from the referendum outcome.  For today, the expectations are similar.

Below is the preview of the report -

• As of now, the unemployment rate in the UK stands at 4.9 percent and median estimate suggests it is likely to remain same.

• So the major focus will be on earnings growth since that will be the measure of economic wellbeing.

• Moreover, a positive wage growth should help to downsize the fear of a slowdown in the economy. It will be a nice evidence that companies are ready to increase wages even in the face of a potential exit from the union.

• Wage growth has been declining since October last year when it reached a peak of 2.8 percent growth excluding bonus. Wage growth was 2.3 percent including bonus and 2.4 percent excluding it last month. It has recovered from a dip in February when it grew by 1.8 percent including bonus.

• Today earnings growth is expected to be at 2.3 percent again including bonus and 2.5 percent excluding it.

It is likely to provide support to the pound if the data comes better than expected or even come in line with expectations. However, the overall downside pressure would remain as the focus is on Brexit and FOMC. The pound is currently trading at 1.267 against the dollar.