GBP/USD defends 1.24 as UK March Claimant Count beats estimates with 12.2K
Fundamental Forex Analysis

GBP/USD defends 1.24 as UK March Claimant Count beats estimates with 12.2K

  • UK March jobless claims change 12.2K vs +172.5K expected.
  • The UK wages excluding bonuses rose by 2.9% YoY vs. +3.0% expected.
  • The unemployment rate in the UK rose to 4.0% in February.

The Office for National Statistics (ONS) showed on Tuesday, the UK’s official jobless rate rose from the previous 3.9% to 4.0% in February, while the claimant count change showed a much smaller-than-expected increase.

The number of people claiming jobless benefits rose by 12.2K in March, against expectations +172.5K and +5.9K (revised up from +17.3K) seen previously. The claimant count rate steadied at 3.5%.

The UK’s average weekly Earnings, excluding bonuses, arrived at 2.9% 3Mo YoY in February versus 3.1% last and 3.0% expected while the gauge including bonuses came in at 2.8% 3Mo YoY in February versus 3.1% previous and 3.0% expected.

About UK jobs

The UK Average Earnings released by the Office for National Statistics (ONS) is a key short-term indicator of how levels of pay are changing within the UK economy. Generally speaking, the positive earnings growth anticipates positive (or bullish) for the GBP, whereas a low reading is seen as negative (or bearish).

GBP/USD reaction

Amid unabated US dollar demand across the board, in light of rising global growth worries due to the coronavirus outbreak, the GBP/UD pair remains pressured just above the 1.24 handle.

The upbeat UK Claimant Count data offered some reprieve to the GBP bulls, as it managed to defend the 1.24 handle. The spot trades at 1.2409, down 0.22% so far.

GBP/USD levels to watch

 

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