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.

Trade Desk Thoughts: The annual rate of growth in average earnings including bonuses was 1.8% in the three months to January 2009. This is the lowest figure since comparable records began in 1991 and is down from 3.1% in the three months to December 2008.

Forex Technical Reaction: The pound had a very strong reaction to the news release, falling nearly 60 pips. Since the beginning of the European session, the pound has fallen 170 pips against the dollar, and 120 pips against the euro.