UK jobseekers are already seeing the impact of Brexit given recently released data regarding advertised salaries. The average advertised salary came out at 32,688 in July, which is 2.4% lower than the same time last year. Furthermore, more jobs were posted as contract which seems to suggest that companies are under pressure with recent Brexit events and holding off on permanent hires. Compounding this, when inflation is taken into account real earnings have decreased by 3 percent.
The number of mortgages that have been approved by banks has fallen to the lowest level in 18 months according to figures released by the Bank of England. The first full month after Brexit was July, where 60,912 mortgages were approved, down from 64,152 approvals in June. These figures also show that there has been a drop of 12.4% in the same month compared with the same time last year. Howard Archer, chief UK and European economist at IHS Global Insight, noted that it is “highly possible that mortgage activity was hit in July by heightened uncertainty following June's vote for Brexit."
CB consumer confidence, this being an index assessing household’s view on the current and future economic outlook, came out at 101.1 against an expected 97.2. The consumer confidence improved in August to its highest level in nearly a year which could signal a moderate pickup in the US economy over the coming months.
Charles Evans, the Chicago Federal Reserve Bank President, has said thathe is increasingly convinced that U.S. economic growth has slowed permanently, which will mean low U.S. interest rates for a long time ahead. He argued that an aging U.S. population and slowing growth mean that there is little reason for interest rates to rise.
13.15 – USD: ADP Non-Farm Employment Change - Forecast at 173K against previous of 179K
15.30 – USD: Crude Oil Inventories