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UK Unemployment Drops – GBP/USD Rises

The unemployment rate in the UK dropped from 8.1% to 7.9% in August, while no changed was expected. Jobless claims for September also exceeded expectations with a drop of 4K, while no change was predicted.

GBP/USD is climbing to 1.6150, extending gains seen earlier in the week.

The drop in jobless claims (Claimant Count Change) is the third drop in a row. The previous drop of 15K was a very good surprise and was well received. The figure was now revised to a drop of 14.2K. The Average Earnings Index rose by 1.7%, a bit better than expected.

In addition, meeting minutes from the latest rate decision showed that members of the Monetary Policy Committee voted  unanimously  for no change in policy. It also provides hope that the UK is truly exiting its current recession.

These good figures lower the chance of more QE in the upcoming MPC meeting in September. For more on the pound, see the GBPUSD forecast.

Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.