Average Hourly Earnings (MoM) is a key economic indicator that measures the percentage change in the average hourly wages paid by businesses in a country, excluding the agricultural sector, compared to the previous month. It’s a vital piece of information in the forex market for several reasons:
Impact on Inflation: Higher wages can lead to higher production costs, potentially pushing up prices and driving inflation. This can impact interest rate decisions by central banks.
Labor Market Tightness: Strong wage growth might signal a tight labor market with more demand for workers than available, which can influence economic growth and consumer spending.
Currency Impact: In the United States, for example, a higher-than-expected reading is generally considered bullish for the US dollar (USD), as it might suggest stronger economic activity and inflation, prompting the Federal Reserve to raise interest rates. Conversely, a weaker-than-expected reading could be seen as bearish for the USD.
Where to Find Information: You can find Average Hourly Earnings data on various financial websites and platforms, including:
- Investing.com: https://www.investing.com/economic-calendar/average-hourly-earnings-8
- Bureau of Labor Statistics (US): https://www.bls.gov/productivity/technical-notes/labor-productivity-hours-data-info.htm
Important Note: Remember that the forex market is complex, and Average Hourly Earnings is just one factor among many that can influence currency movements. It’s crucial to consider other economic indicators, geopolitical events, and market sentiment before making any trading decisions.