Uk Unemployment Rates Declines

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Uk Unemployment Rates Declines

UK Unemployment Rates Declines To 4.0% In August

The latest ILO Unemployment rate (UK) declined to 4.0% in August, while July's reading was 4.1%. This data was released by the ONS and shows a slight improvement in the employment rate.

The market forecasted an unemployment rate of 4.1%, but the actual value turned out to be 0.1% lower. Normally, a lower reading is taken as something bad, but in this case, it was good news for the UK labour market.

Increase In People Applying For Jobless Benefits

The report also showed that the number of people with jobless benefits also increased in September by around 27,900. If we look back, the August reading was 23,700 which shows a slight jump. However, the September's reading of 27,900 was also higher than the forecast of 20,200.

The Employment Change data from the UK also showed a change from 265,000 in July to 373,000 in August. Average earnings without bonuses also increased in the UK during August.

According to the data, the average earnings in the UK jumped by 4.9% y/y in August (3M) against July's reading of 5.1%. That's the only reading which was in line with the forecast of 4.9%.

And if we look at the average earnings (bonus included), it has jumped by 3.8% during the same period while the earlier reading was 4.0%. For this metric, the market was forecasting a reading of 3.8%.

GBP/USD had little to no effect after the release of the UK employment report. The reason for this lack of action is that the UK employment data was mixed.

After the release, the GBP/USD kept trading in its range near the 1.3050 handle. Over all, the GBP/USD is around 0.14% lower after the release of the data.

The GBP/USD is seen trading near 1.3040 with the 1.3000 acting as the first support. On the way up, the first temporary resistance is at 1.3050 followed by the next stop at 1.3100.

Now, all the eyes are on the US Retail Sales data as it is a closely watched metric to determine the inflation report in the country.

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