The UK saw 20.7K less people claiming for jobs, slightly worse than expected but nothing dramatic. The unemployment rate dropped to 5.6% as expected and the average earnings rate rose by 1.7%, slightly below 1.8% expected, but ex-bonuses it rose 1.8%.
All in all, this is a small miss. Perhaps this is enough to take away the momentum and prevent a run on 1.50, but cable remains on high ground. Update: after an initial struggle, the pair makes its way above 1.50.
The UK was expected to report a drop of 29.1K jobless claims (Claimant Count Change) for March. The unemployment rate for February carried expectations for a tick down to 5.6% and the average earnings rate was expected to remain at a level of 1.8%
GBP/USD traded around 1.4970, moving up on the dollar’s weakness and edging closer to the difficult 1.50 level it tackled beforehand.
The tension is growing towards the elections on May 7th. On the economic front, the Conservatives take credit for the recovery and job growth, while opposition Labour says that the standard of living has fallen, with real wages curbed.
Earlier this week, inflation remained at 0%, but other figures came short of expectations. Nevertheless, the weakness of the US dollar, following a streak of disappointing numbers, pushed cable higher.
More: How’s your broker’s spread in March? Detailed data for 100+ brokers
In our latest podcast, we talk about The Confetti Lady that moved Draghi but not Markets
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