A better than expected jobs report in the UK: the number of jobless claims fell by 10.1K, far better than a rise of 5K predicted. Earnings advanced by 2.8% and wages excluding bonuses rose by 2.7%. Also, these figures beat early estimates. The unemployment rate remains unchanged at 4.8% as projected.
GBP/USD seems somewhat indifferent, without sufficient energy to rise after yesterday’s impressive rally. Nevertheless, good news is good news, and the pound could advance on this later on.
The United Kingdom was expected to report an increase of 5K in the number of jobless claims, the Claimant Count Change, in the month of December 2016. For November, the unemployment rate was expected to remain unchanged at 4.8%. Average earnings carried expectations of rising by 2.6% y/y, up from 2.5%. Excluding bonuses, the same 2.6% gain was predicted.
GBP/USD was sliding from the highs ahead of the publication, trading around 1.2330. Support awaits at 1.23 and then 1.22. Resistance is at 1.2415.
The pound rallied hard on Tuesday thanks to Prime Minister Theresa May. While she did say that the UK will leave the single market, the PM also announced that parliament will need to approve the Brexit deal and that this agreement will be a phased one.
More: GBP: More Downside On Article 50 Activation; Staying Short – Goldman Sachs
Here is the pound/dollar 30-minute chart: