UK unemployment report preview:

Another post-referendum unemployment report will be published today and that is likely to be a key driver for the sterling. As of now, the economy seems to be working fine but the focus has turned to the probable future relations between the UK and the rest of the members of the European Union.

One of the key measures of economic wellbeing is the unemployment report, which will be released from the United Kingdom today at 9:30 GMT. The reports released so far have showed not much of an impact of the referendum outcome.  For today, the expectations are similar.

Below is the preview of the report -

• As of now, the unemployment rate in the UK stands at 4.9 percent and median estimate suggests it is likely to remain same.

• So the major focus will be on earnings growth since that will be the measure of economic wellbeing.

• Moreover, a positive wage growth should help to downsize the fear of a slowdown in the economy. It will be nice evidence that companies are ready to increase wages even in the face of a potential exit from the union.

• Wage growth has been declining since October last year when it reached a peak of 2.8 percent growth excluding bonus. Wage growth was 2.3 percent both excluding bonus and including it last month.

• Today earnings growth is expected to be at 2.3 percent again.

It is likely to provide support to the pound if the data comes better than expected or even come in line with expectations. However, the overall downside pressure would remain as the focus is on Brexit. The pound is currently trading at 1.247 against the dollar.