GBP: UK pay growth rises to 3.1% in three months to August

Total earnings for UK workers, excluding bonuses, rose by 3.1% in the three months to August following a 2.9% rise in the previous period. Analysts had expected the figure to
hold steady, but it surprisingly increased. Including bonuses, average earnings increased by 2.7%, which was better than the 2.6% expected. The news helped support the pound,
which made some gains against the euro and dollar, despite continuing Brexit uncertainty.

As expected, the unemployment rate remained at 4% in the three months to August, to stay at the lowest mark since 1975. However, the number of people claiming for unemployment
benefits increased by 18,500 to 943,000 in September 2018 which was higher than expectations of a 7,500 increase. Still, it was a positive day for UK economic data and let us
hope that it continues for some time yet.

Today we will see the inflation rate for September which is expected to dip a little to 2.6% from 2.7% in the previous month. If it increases, we might yet see further
sterling movement, as the markets would take it to mean that the Bank of England is more likely to increase interest rates.