GBPUSD Loses Momentum On Weak UK Labour Market Report

Published on May 14, 2024 16:46

UK pound lost momentum and edged lower against the dollar following weak unemployment data. The ILO Unemployment Rate edged higher to 4.3% in the three months to March from 4.2%, matching market expectation. The Claimant Count Change rose 8.9K, while the Employment Change was down 177K in April. Average Earnings Excluding Bonus rose 6% annually in the three months to March while Average Earnings Including Bonus were up 5.7% on year in the same period. GBPUSD pair came off intraday high of $1.2566 and was currently quoting at $1.2557, mildly lower on the day. UK 10-year government bond yield also dropped to around 4.14% following the release of labor data that raised bets the central bank will soon reduce interest rates. Dollar index staying steady awaiting a slew of US data also failed to guide the pair. Weaker labour market data is sending signals to BoE for an interest rate reduction although Powell�s remarks and US inflation data this week will be crucial for the pair.