Breaking: GBP/USD jumps as UK March Unemployment Rate unexpectedly drops to 3.9%
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- UK April jobless claims changed 856.5K vs +150K expected.
- The UK wages excluding bonuses rose by 2.7% YoY vs. +2.6% expected.
- The unemployment rate in the UK dropped to 3.9% in March.
The Office for National Statistics (ONS) showed on Tuesday, the UK’s official jobless rate dropped from the previous 4.0% to 3.9% in March, while the claimant count change showed a much bigger-than-expected increase last month.
The number of people claiming jobless benefits rose by 856.5K in April, against expectations +150K and +5.4K (revised up from +12.2K) seen previously. The claimant count rate jumped to 5.8%.
The UK’s average weekly Earnings, excluding bonuses, arrived at +2.7% 3Mo YoY in March versus +2.9% last and +2.6% expected while the gauge including bonuses came in at +2.4% 3Mo YoY in March versus +2.8% previous and +2.7% expected.
About UK jobs
The UK Average Earnings released by the Office for National Statistics (ONS) is a key short-term indicator of how levels of pay are changing within the UK economy. Generally speaking, the positive earnings growth anticipates positive (or bullish) for the GBP, whereas a low reading is seen as negative (or bearish).
GBP/USD reaction
An unexpected drop in the UK’s jobless rate put a fresh bid under the GBP, driving GBP/USD to fresh daily highs of 1.2229. The bulls ignored a massive surge in the claimant count for April.
GBP/USD levels to watch
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