According to the European Central Bank's (ECB) latest Economic Bulletin, “employee pay should rebound strongly in the second quarter of 2021 following a dramatic drop in growth in the second quarter of 2020 as a result of the covid crisis,” MNI reports on Tuesday.
Additional takeaways
“With upward base effects strongest in those high-contact service sector jobs hit hardest by lockdown restrictions.”
“More generally, per employee compensation developments will normalize over the coming years.”
“But it is unclear whether sectoral wage negotiations will aim to make up for pandemic-related losses, a process which could add to wage growth.”
EUR/USD reaction
EUR/USD is holding the higher ground but remains capped below 1.1900, as investors await the US NFP report for a fresh direction.
The spot was last seen changing hands at 1.1881, adding 0.12% on the day.