Pound hits one-year high over $1.33 ahead of UK jobs report – business live

All the day’s economic and financial news, including new UK unemployment and earnings figures

Introduction: Sterling is rallying against the US dollar
Traders are anticipating earlier interest rate rises
But is economy strong enough?
Today’s data expected to show wages are lagging prices

8.50am BST

Economist Rupert Seggins is tweeting some good charts to get us up to speed, ahead of today’s UK jobs report.

They shows how real wages (adjusted for inflation) have been falling for several months, even as the unemployment rate hits its lowest since the 1970s.

1. UK labour market stats today. The headline was given to us yesterday. Pay squeeze. Using the CPI, real pay is expected to fall -1%y/y. pic.twitter.com/ZgzXl4IARn

2. The UK employment juggernaut is expected to rumble on. Consensus forecast says 154,000 more in employment in the 3 months to July. pic.twitter.com/cEBK6vSlUB

3. How low can the UK unemployment rate go? Nobody really knows. Big headache for the #MPC. Peacetime lows have been in the 1% to 2% range. pic.twitter.com/8C2bdQBynE

4.The (rough) historical relationship between wage growth & unemployment may still be there. Sort of. Light at the end of the pay squeeze? pic.twitter.com/iDDXr8rmIi

8.44am BST

The strength of the pound is pulling shares down in London this morning.

The FTSE 100 has shed 58 points, or 0.8%, to 7354. Mining giants, oil companies and major exporters, such as pharmaceutical group Shire and drinks firm Diageo, are among the fallers.

The miners have all moved lower, while BP and Shell are both down half a percent. However, the main reason for the UK index’s decline was the pound’s latest climb.

8.28am BST

The British pound has seen “tremendous strength this week”, says Naeem Aslam of Think Markets, adding:

If you want to see a currency which is having one of the best runs this week, then look no further.

8.25am BST

Sterling has also risen against the euro, gaining 0.2% to €1.1124.

7.57am BST

Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.

The pound has hit a new one-year high this morning, as the City braces for a new health-check on Britain’s jobs market.

Related: Pound hits one-year high as UK inflation rate jumps to 2.9% – as it happened

For average earnings the story continues to be disappointing.

A solid wages number could shift the calculus on the MPC further towards a rate rise with chief economist Andrew Haldane likely to join the other two hawks Michael Saunders and Ian McCafferty in pushing for a rate rise, given recent comments he made during the summer, when inflation ticked up to the same level it is now.

European opening call @LCGTrading $FTSE -18 points at 7382$DAX -26 points at 12498$CAC -9 points at 5200#EuroStoxx -7 points at 3505

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