The UK enjoyed a big pay rise in spring, with average earnings 3.2% higher in the period from March to May 2015 than a year earlier, highlighting the increasing skills shortages forcing employers to offer higher wages. Although the growth in wages is strong, it did slightly miss economists forecasts of 3.3% growth, however this should be welcome news for Mark Carney after yesterdays comments that interest rates will be looking to increase in the near future.
However, the better earnings figures came as the unemployment rate rose for the first time in two years, sparking fears that Britain’s booming labour market has lost some of its momentum. Employment also fell for the first time in two years, dragged down by the government’s continued austerity programme that has forced 22,000 public sector job cuts since December and 59,000 since May last year.
On the back of the slightly disappointing data from the UK we did see GBP weaken off yesterday as the data was released.
Hours before the vote from Greek MP's, Tsipras suffered a blow with the loss of a key minister, Nadia Valavani. The deputy finance minister resigned, stating it was impossible for her to keep serving in the government given the austerity measures Tsipras had agreed with their creditors. She warned the nation faced a crushing capitulation at the hands of its creditors in Brussels.
Greek MPs last night approved tough economic measures required to enable an €86bn Eurozone bailout deal to go ahead. The legislation includes tax rises and an increase in the retirement age. Two hundred and twenty nine lawmakers voted Yes, 64 voted No and six abstained. The vote passed despite 32 of his ruling left-wing Syriza party voting No. The vote means the government lost its majority but is expected to survive. It is now up to Eurozone finance to discuss the vote in a conference call today
10:00 – EUR : Consumer Price Index
(YoY) expected to stay the same at 0.8%
13:30 – EUR : ECB Monetary Policy Statement
15:00 – USD : Janet Yellen testifies to congress