The number of jobless claims (Claimant Count Change) in the UK during May dropped by 8,600, more than 6,800 expected. This comes on top of a better figure for April: a drop of 11.8K instead of 7.3K originally reported. The unemployment rate for April was expected to stand at 7.8% and that’s what happened.
GBP/USD was trading on high ground prior to the publication, at around 1.5650 and it is now a bit higher, at 1.5670.
The average earnings index surprised to the upside by rising 1.3% instead of 0.3% expected. The figure for March was revised to the upside, from a rise of 0.4% to 0.6%.
The purchasing managers’ indices also showed improvement in the British economy.
1.5680 is the high line already reached today and also seen back on Friday. The British pound certainly enjoys the weakness of the US dollar across the board. The greenback is retreating on lower expectations for tapering, and general market volatility.
For more on cable, see the GBP/USD forecast.
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