Manufacturing still a major concern, but services more resilient – ABN AMRO
Forex News

GBP/USD remains pressured below 1.22 as UK jobless rate tick higher to 3.9% in Jan

  • The UK wages excluding bonuses rose by 3.1% YoY vs. +3.2% expected.
  • The wages including bonuses rose by 3.1% YoY vs. +3.0% expected.
  • The unemployment rate in the UK rises to 3.9% in January.

The Office for National Statistics (ONS) showed on Tuesday, the UK’s average weekly Earnings, excluding bonuses, arrived at 3.1% 3Mo YoY in January versus 3.2% last and 3.2% expected while the gauge including bonuses came in at 3.1% 3Mo YoY in January versus 2.9% previous and 3.0% expected.

The Kingdom’s official jobless rate rose from the previous 3.8% to 3.9% in Jan, while the claimant count change showed a smaller-than-expected increase.

The number of people claiming jobless benefits rose by 17.3K in February, against expectations +21.4K and -0.2K (revised up from +5.5) seen previously. The claimant count rate climbed to 3.5% vs. 3.4% previous.

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 recession risks due to the coronavirus outbreak, the GBP/UD pair hit a new six-month low of 1.2176.

At the press time, the cable trades at 1.2180, down 0.70% on the day.

Focus now remains on the UK PM Johnson’s “significant coronavirus economic package” to support the business community.

GBP/USD levels to watch

 

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