Breaking: GBP/USD jumps as UK March Unemployment Rate unexpectedly drops to 3.9%

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.

FXStreet Team FXStreet

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

GBP/USD

Overview
Today last price	1.2228
Today Daily Change	0.0007
Today Daily Change %	0.06
Today daily open	1.2194

Trends
Daily SMA20	1.2357
Daily SMA50	1.2308
Daily SMA100	1.2661
Daily SMA200	1.2663

Levels
Previous Daily High	1.2228
Previous Daily Low	1.2076
Previous Weekly High	1.2438
Previous Weekly Low	1.2102
Previous Monthly High	1.2648
Previous Monthly Low	1.2165
Daily Fibonacci 38.2%	1.217
Daily Fibonacci 61.8%	1.2134
Daily Pivot Point S1	1.2104
Daily Pivot Point S2	1.2014
Daily Pivot Point S3	1.1952
Daily Pivot Point R1	1.2256
Daily Pivot Point R2	1.2318
Daily Pivot Point R3	1.2408

Author

FXStreet Team

FXStreet

Composed of a group of economic journalists and FX experts, the FXStreet content team produces and oversees all content published on FXStreet. It provides a purely journalistic approach to the Forex market.

AUD/USD stuck as the RBA talks tough into a slowdown

The Australian Dollar is going nowhere in a hurry, and the contradiction at its core explains why. The Reserve Bank of Australia keeps dangling the prospect of another hike, yet the economy it governs just expanded 0.3% in the first quarter, a clear step down from the prior pace. A central bank threatening to tighten into a visible slowdown is not a recipe for conviction in either direction, and the tape shows it.

USD/JPY: Japanese Yen coiled at the line, leaning on everyone but Japan

The Yen is doing very little, and that stasis is the whole story. USD/JPY sits glued near 160.00 not because Japan has found new strength, but because two outside forces are fighting to a draw over it: a US rate complex that keeps the dollar bid, and a Ministry of Finance that refuses to let the line break.

Gold declines below $4,500 on stalled US-Iran ceasefire talks, US NFP data looms

Gold price edges lower to near $4,470 during the early Asian session on Friday. The precious metal remains volatile amid ongoing geopolitical turmoil. Traders will closely monitor the developments surrounding the US-Iran peace deal and the US May employment report later on Friday.

DeFi hack losses drop 80% from 2022 peak as security defenses improve — Immunefi

Losses from decentralized finance exploits have fallen by 80% since reaching a record high in 2022, according to a report released by Immunefi. The report, which analyzed exploit-driven losses across major blockchain ecosystems between 2020 and 2025, found that DeFi protocol losses declined from $2.62 billion in 2022 to $534 million in 2024.

Nonfarm payrolls: Testing the limits of Fed policy patience

The upcoming nonfarm payrolls report for May will provide the final update on the US labor market before Kevin Warsh attends his first policy meeting as the new Fed Chair later this month.

Recession on paper: What really moves the Canadian Loonie now?

Statistics Canada handed the headline writers a gift and the analysts a headache. Real GDP shrank 0.1% on an annualized basis in the first quarter, and with the fourth quarter of 2025 revised down to a 1.0% contraction, that is two negative quarters in a row, the textbook definition of a technical recession and Canada's first since the pandemic.