Release Explanation: This release measures the change in the prices that businesses and governments pay for labor. “Although, this report does not take into account all sources of household income but the labor cash earnings does accurately reflect the spending ability of domestic households, which is one of the driving forces of economic growth,” TheLFB-Forex.com Trade Team said
TheLFB-Forex.com Trade Desk Thoughts: The annual rate of growth in average earnings including bonuses was 0.1 per cent in the three months to February 2009. This is the lowest figure since comparable records began in 1991 and is down from 1.7 per cent in the three months to January. This fall in the growth rate was mainly due to lower bonuses in the financial sector.
Forex Technical Reaction: The pound declined 80 pips during the European trading session. During the news release, the pound lost 40 pips. TheLFB-Forex.com Trade Team notes that the pound is heading towards the 100 SMA, which may pull some additional selling orders if broken