The UK has reported a decrease in its Unemployment Rate to 4.6% in July, as expected, while Average Earnings excluding bonuses beat estimates with an increase of 8.3% YoY. Jobless claims fell by 58,600 in August, below expectations. Millions of Brits remain on furlough programs which are set to be phased out.

The pound remains under pressure in the immediate aftermath of the release, with GBP/USD edging lower to 1.3830.

GBP/USD 15-minute chart:

Economists expected the Unemployment Rate to extend its decline and drop to 4.6% in July from 4.7% in June. Wage growth was projected to ease from 8.8% to 8.2% when including bonuses and from 7.4% to 6.8% when excluding them in July.

The Claimant Count Change was forecast to tumble by 71,7000 in August after a slide of 7,800 in July.

GBP/USD traded around 1.3850 ahead of the publication, consolidating gains it made on Monday. The dollar has been on the back foot ahead of Tuesday’s US Consumer Price Index (CPI) release.

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