Mixed Signals: UK Jobs and Wage Data Paint Unclear Picture

The pound remained steady after UK wage data showed strong growth in July despite a weakening labor market, creating uncertainty ahead of the Bank of England's decision next week. Wages excluding bonuses rose 7.8% compared to the previous year, in line with expectations, while wages including bonuses increased to 8.5%. The unemployment rate ticked up to 4.3%. The data puts the Bank of England in a difficult position, with some policymakers suggesting it is too soon to stop raising interest rates. Traders are pricing in an 82% chance of a rate hike next week.