Great Britain published its unemployment rate this morning, revealing a 0.2% decline from 7.9% to 7.7% for the preceding month. The pound was trading lower, however, as the Claimant Count Change for April showed 12,000 more people filing for unemployment benefits than was expected.
While average hourly earnings was also up by 2.7% in Great Britain, usually indicating job growth, the claimant count figure superseded any potential bullishness expected out of the UK economy.
The British pound (GBP) has been moving downward against its currency rivals today, with the GBP/USD reaching as low as 1.6170 and the EUR/GBP climbing as high as 0.8806. Both of these major pairs appear to have momentum favoring GBP bearishness.
The unemployment rate was a surprise for many, though, considering the recent data out of the UK economy these past several months. Some analysts had shown expectations for a healthier rise in employment, but a faltering industrial and manufacturing sector has recently weighed on the British job market.
The hike in wages was a healthy indicator, though it too may only be a lagging reflection of what was occurring in the early days of April. The stagnation in prices experienced since then appears to have more pull than anything else.
Read more forex trading news on our forex blog.
