News Column

Pound Climbs As UK Employment Rises

June 11, 2014

BRUSSELS (Alliance News) - The British currency strengthened against the other major currencies in the European session on Wednesday following the release of UK unemployment rate report, which recorded a fall for three months through April and and more-than-forecast drop in jobless claims in May.

Data from the Office for National Statistics said that the UK jobless rate declined below expectations during February to April period and employment increased notably.

The ILO unemployment rate came in at 6.6% compared to 7.2% during November to January and 7.8% during the same period, last year. The expected rate was 6.7%.

There were 1.09 million people claiming Jobseeker's Allowance in May, down 27,400 from April. Economists had forecast a decrease of 25,000. The claimant count fell to 3.2% in May, in line with forecast, from 3.3% in April.

The pound hit a 1-1/2-year high of 0.8052 against the euro from an early low of 0.8084. If the pound extends its gain, it is likely to find resistance around the 0.79 zone.

The pound climbed to a 5-day high of 1.5127 against the Swiss franc, from an early low of 1.5056. The next possible upside target level for the pound is seen at 1.52.

The pound that climbed to 171.79 against the yen, eased to 171.24. The pound is thus nearing its early multi-day low of 171.21. The pair closed yesterday's deals at 171.44.

After falling to multi-day low of 1.6736 against the US dollar in early deals, the pound reversed direction and was trading higher at 1.6796. If the pound extend its uptrend, it is likely to find resistance around the 1.68 zone.

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Source: Alliance News

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