Currency Analyst since 2010

GBP/USD holds after unemployment data

GBP/USD spiked down to 1.5880, but then returned to the 1.5925 area as Britain released labor market data.

The decline in the number of people claiming unemployment-related benefits was less than expected, while the unemployment rate remained at 6% and didn’t decline to 5.9% in line with forecasts. At the same time, average earnings index rose by 1%. This is a bit higher than the market has hoped and good for inflation, so this is considered to be an improvement.

The focus is now on the Bank of England’s Inflation Report and Mark Carney’s speech at 10:30 GMT – this will really make the market to adjust expectations for the central bank’s rate hike.

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