UK employment figures favoured Sterling as it found its way back above the long term bullish trendline.
Cable gained 100 pips today after the Jobless Rate dropped below the 7% threshold to 6.9%, which is the highest in three months. This coupled with better then expected inflation figures bags the question, if the Bank of England will increase interest rates earlier than previously proposed. The U.K 10 year government bonds declined with yields rising high.
Across the Atlantic, the U.S Federal Reserve’s chairwoman, Yellen stated, that the United States are about to enter into full employment by 2016. They consider full employment within an unemployment range of 5.2 % to 5.6 %, signalling that the rates should be low for a long period.
Switzerland’s April ZEW Investor Expectations came in at 7.0, significantly below the forecast of 23.00. The Swiss Franc had an interesting ride, at first it had strengthened against the Cable and the Euro, as it hit 1.2204 and 1.4830, respectively, after which the bears and selling pressure got in and sent it back down within 30 seconds to 1.2175 against the Euro and 1.4795 against the Cable.
Markets are trading in the green on the back of positive data coming out of Europe and the US, traders are expected to profit take as the long weekend unfolds with Russia and Ukraine still on the brink of conflict.
Further reading: GBP/USD: Trading The Philadelphia Fed Manufacturing Index