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UK earnings leap – GBP/USD follows

Good news  for British workers: salaries have risen 2.7% in April, more than expected.  The same number applies  when including and excluding bonuses. Jobless claims (Claimant Count Change) for May dropped by 6.5K, falling short of predictions. The unemployment rate remained unchanged at 5.5% for April. The meeting minutes showed a unanimous decision on no policy change, as expected.

GBP/USD leaps above 1.57. Update: the  rise is continuous and the pair already hits a high of 1.5728, a rise of 50 pips from the release and around 100 pips since the top of the hour.

Also previous wage data was revised to the upside: 2.3% in both figures, from 2.2%  excluding bonuses and 1.9% including originally reported for March.

The meeting minutes note that the exchange rate  is volatile and that  low inflation is expected to dissipate soon.

The UK was expected to report a drop of 12.5K jobs in May. The unemployment rate for April was predicted to remain unchanged at 5.5% for April. The Average Earnings Index (aka wage growth) carried projections for an acceleration to an advance of 2.1% in April and 2.5% excluding  bonuses. At the same time, the UK also released the meeting minutes from the latest  rate decision, giving us insights about the view from Carney and co.

GBP/USD  was on the rise towards the event, trading around 1.5650.

The pound has shown a lot of strength in recent days, rising against the dollar and also against other currencies.

More:  GBP/USD: Further Upside; – RBS

Here is how it looks on the charts:

GBPUSD shoots higher together with salary rises in the UK June 17 2015

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.