GBP Traders Must Know This Data Development!

<p>&nbsp;Heading into the European session, the market was graced by the release of UK employment data which showed a mixed reading in May.</p><p><br /></p><p>The Office for National Statistics (ONS) reported the unemployment rate rose to 4.0% in the three months to May, up from 3.8% previously recorded.</p><p><br /></p><p>However, the most focused component as the main indicator of inflation, which is the average income index, is reported to remain higher.</p><p><br /></p><p>Average salary growth including bonuses increased by 6.9% year-on-year in May compared to expectations for a 6.8% rise, the highest reading since August 2021.</p><p><br /></p><p>While salary growth excluding bonuses increased by 7.3%, the highest since June 2021 compared to the expected 7.1%.</p><p><br /></p><p><br /></p><p>Disregarding the time of the Covid-19 pandemic, this is the highest reading ever recorded on record.</p><p><br /></p><p>Analysts are of the view that the labor market in the UK is still too tight, as wage growth remains above normal.</p><p><br /></p><p>These figures are the first of two key pieces of data that the Bank of England (BOE) will look at to determine its decision at its meeting in early August.</p><p><br /></p><p>Even so, pound investors still failed to react significantly to the data, seeing it trade slightly off its 15-month high against the US dollar.</p>