Pound Bounces Off After U.K. Jobless Rate Falls To 44-year Low
14 Maggio 2019 - 10:28AM
RTTF2
The pound rebounded from its early lows against its major
counterparts in the European session on Tuesday, as U.K. jobless
rate declined in the first quarter to the lowest since 1974,
pointing to a continued strengthening of the labor market.
Data from the Office for National Statistics showed that the ILO
jobless rate came in at 3.8 percent in the first quarter, while the
rate was expected to remain unchanged at 3.9 percent. The rate has
not been lower since last quarter of 1974, the ONS said.
In the three months to March, the number of people who were
unemployed decreased by 65,000 to 1.3 million. This was the largest
quarterly decrease since September to November 2016.
At the same time, the employment rate came in at 76.1 percent,
the joint-highest since comparable records began in 1971. The
number of people in employment increased by 99,000 on the quarter
to 32.70 million.
Excluding bonuses, average weekly earnings for employees
increased by 3.3 percent. Including bonuses, weekly earnings
climbed 3.2 percent, data showed.
In April, the number of people claiming jobseekers' allowances
increased by 24,700 from March.
The currency was under pressure early in the session, following
media reports that the UK PM Theresa May is unlikely to compromise
with Labour's proposal for a customs union with the European
Union.
The pound recovered to 0.8664 against the euro, from near a
2-week low of 0.8692 hit at 4:00 am ET. Next key resistance for the
pound is seen around the 0.85 level.
Final data from Destatis showed that Germany's consumer price
inflation accelerated as initially estimated to its highest level
in five months in April.
Consumer price inflation rose to 2 percent in April from 1.3
percent in March. This was the highest rate since November, when
prices were up 2.1 percent.
The U.K. currency staged a mild rebound to 1.2964 against the
greenback, after having dropped to a new 2-week low of 1.2923 at
3:30 am ET. On the upside, 1.31 is possibly seen as the next
resistance level for the pound.
The pound was trading higher at 141.91 against the yen, up from
a low of 141.36 seen at 6:30 pm ET. The pound is poised to test
resistance around the 144.00 level.
The pound advanced to 1.3066 against the franc, snapping back
from a fresh 5-week low of 1.3009 touched at 6:30 pm ET. The pound
is seen finding resistance around the 1.32 region.
Looking ahead, U.S. import and export prices for April are
scheduled for release in the New York session.
At 12:45 pm ET, Federal Reserve Bank of Kansas City President
Esther George will give a speech about the economy at the Economic
Club of Minnesota, in Minneapolis.
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