GBP/USD Slightly Lower as Unemployment Drops But Wages Disappoint

gbpusdfall

  • The British Pound lost 0.25% versus the US Dollar after today’s UK labor data.
  • The UK unemployment rate unexpectedly fell to 5.3%.
  • Core weekly earnings slowed to 2.5%, below expectations

The British Pound lost 0.25% versus the US Dollar after today’s UK employment data, as the unemployment rate unexpectedly fell, but wage growth slowed. The unemployment rate dropped to 5.3% from July to September, below an unchanged 5.4% rate expected by economists, marking the lowest rate since 2008. The UK added 177K jobs, beating expectations for an addition of 120K jobs, subsequently raising the number of people employed to 31.2 million. Jobless Claims signaled a rise of +3.3K; a worse figure than was expected by economists, who’s forecast was for a rise of +1.4K. The prior reading was revised down to 0.5K. Core averageweekly earnings slowed to 2.5% in the last three months, below the expected 2.6%, and below the prior 2.8%. Pay growth including bonuses remained unchanged at 3.0%, but fell to meet expectations for a rise to 3.2%.

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