Investing.com - The jobless rate in the U.K. surprised with a slight drop to a fresh 11-year low in February, while wage inflation increased more than expected, official data showed on Wednesday.
The Office for National Statistics said that the rate of unemployment remained stable as expected in February at an 11-year low of 4.7%.
The claimant count unexpectedly increased by a seasonally adjusted 25,500 in March, compared to expectations for a decline of 3,000 people and following a fall of 6,100 a month earlier, whose figure was revised from a previously reported reduction of 11,300.
Meanwhile, the average earnings index, including bonuses, rose by a seasonally adjusted 2.3% in the three months to February, compared to forecasts for it to increase 2.2%. January’s reading was revised up to 2.3% from an initial gain of 2.2%.
Excluding bonuses, wages rose by 2.2%, beating forecasts for a 2.1% gain and compared to a 2.4% increase in the three months to January which was revised from a 2.3% advance.
Following the report, GBP/USD traded at 1.2500 from around 1.2496 ahead of the release of the data, EUR/GBP was at 0.8492 from 0.8494 earlier, while GBP/JPY exchanged hands at 137.09 compared to 137.08 prior to the release.
Meanwhile, European stock markets were broadly higher. London’s FTSE 100 rose 0.34%, the benchmark Euro Stoxx 50 gained 0.35%, France's CAC 40 advanced 0.43%, while Germany's DAX traded up 0.40%.