The GBP/USD currency pair today rallied to new highs following the release of the UK labour market report for March. The report indicated that wages for workers in the UK had improved greatly, which shifted investor sentiment towards the pound, and triggered the pair’s rally.
The GBP/USD currency pair today gained over 75 points to rally from an early low of 1.4000 to a high of 1.4079.
The release of the UK labour market report by the Office for National Statistics in the early European session was the main trigger behind the pair’s rally. The report indicated that average weekly earnings excluding bonuses were in line with expectations at an annualized 2.6%, while weekly earnings including bonuses grew by 2.8%, which was higher than the expected 2.6%. The number of people claiming jobless benefits increased by 9,200, which was higher than the expected 5,000 decline. The ILO unemployment rate for the 3-month period up to January came in at 4.3%, which was lower than the expected 4.4% print.
The release of the UK public sector finances report for February was a minor event that was eclipsed by the jobs report. The pair had retraced some of its gains earlier in the session as the US dollar gained against the sterling, but this was short-lived as the pair resumed its uptrend.
The currency pair’s future performance is likely to be affected by the FOMC rate decision later today, and tomorrow’s Bank of England rate decision.
The GBP/USD currency pair was trading at 1.4066 as at 16:34 GMT having rallied from a low of 1.4000. The GBP/JPY currency pair was trading at 149.60 having risen from a low of 148.92.
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