Investing.com - The average earnings index in the U.K. increased less than expected in the three months to June, dampening the case for higher interest rates, official data showed on Wednesday.
In a report, the U.K. Office for National Statistics said that the average earnings index, including bonuses, rose by a seasonally adjusted 2.4% in the three months to June, missing forecasts for a gain of 2.8% and after increasing by 3.2% in the three months to May.
Excluding bonuses, wages rose by 2.8% in the three months to June, in line with expectations and following a 2.8% increase in the three months to May.
GBP/USD was trading at 1.5555 from around 1.5591 ahead of the release of the data, while EUR/GBP was at 0.7166 from 0.7141 earlier.
Meanwhile, European stock markets held on to sharp losses. London’s FTSE 100 dropped 1.4%, the EURO STOXX 50 tumbled 2.2%, France's CAC 40 plunged 2.3%, while Germany's DAX sank 2.2%.