Average hourly earnings rose 1.9% in March and excluding bonuses, we have a rise of 2.2%. The unemployment rate dropped to 5.5% as expected.
This UK data trumps a smaller than expected drop in jobless claims, and GBP/USD climbs to a new high well above 1.57: the high so far is 1.5746.
It seems that the pound takes advantage of every positive data point in the most pronounced manner possible. If the BOE is cautious, will the pound ignore it?
The United Kingdom was expected to report a drop of 20.5K jobless in April (Claimant Count Change). The unemployment rate was expected to drop from 5.6% to 5.5% for the month of March. Year over year growth in wages carried expectations for +1.7%, just like in February and excluding bonuses, a rise of 2.1% was on the cards.
GBP/USD traded on high ground, around 1.5685, before the publication.
Cable is still enjoying the results of the elections, which were exactly what the markets wanted: an absolute majority for the conservatives.
The Bank of England has kept quiet towards the big political event, and also afterwards, it left the interest rate unchanged as expected. But this silence will end in just one hour: the Bank releases its Quarterly Inflation Report, which always moves markets. The event is accompanied by a press conference led by Governor Mark Carney.
More: Can The Pound Rally For Long Or Go Far? – SocGen
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