recovers swiftly ahead of the United Kingdom’s Employment report for July, which will demonstrate current labor market conditions. Investors will keenly focus on wage growth momentum, which has remained a major trigger for keeping inflationary pressure extremely stubborn. are performing in a high-inflation environment. Investors will also look for commentaries from BoE policymakers to get cues about how much the current interest rates are close to their peak.
Higher wage growth momentum has been a big worry for BoE policymakers. BoE Governor Andrew Bailey warned last week that there has been no let-up in the pace of wage growth. Investors hope that an end to interest rate tightening by the BoE is not as far off as previously believed. Andrew Bailey commented: "Many of the indicators are now moving as we would expect them to move and are signaling that the fall in inflation will continue.”
Any surprise upside in inflation data would force Federal Reserve policymakers to keep the doors open for further policy tightening.