Pound Higher After UK Employment Report

The Great Britain pound rallied today following the release of an employment report that was positive for the most part. In particular, the unemployment rate fell to the lowest level in 42 years.

Office for National Statistics released a report that showed an unexpected drop of the unemployment rate from 4.6% to 4.5% in the three-month period from March to May, reaching the level not seen since 1975. But average weekly earnings rose just 1.8% in the same period from a year ago, slowing from the 2.1% pace of increase in the previous report. The claimant count increased by 6,000 in June, below the forecast value — 10,500.

GBP/USD gained from 1.2842 to 1.2889 as of 14:39 GMT today, bouncing from the daily low of 1.2811. EUR/GBP slumped from 0.8922 to 0.8849, failing to maintain the rally that has brought the currency pair to the session high of 0.8948 — the level not seen since November 9.

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