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 excluding bonuses was 3.6% in the three months to December 2008, unchanged from the three months to November. Including bonuses, it was 3.2%, unchanged from the three months to November.
Forex Technical Reaction: The pound had a very strong reaction to the news release, gaining more than 60 pips. Since the beginning of the Asian session the pound has fallen 80 pips, breaking under the low of the previous day of trading.