Pound Rises As U.K. Unemployment Rate Hits 7-year Low
April 17 2015 - 5:24AM
RTTF2
The British pound strengthened against the other major
currencies in the early European session on Friday, after data
showed that the U.K. unemployment rate fell to the lowest since
2008.
Data from the Office for National Statistics showed that the ILO
jobless rate came in at 5.6 percent in three months to February,
down from 5.8 percent in September to November. The rate came in
line with expectations.
There were 1.84 million unemployed people, down by 76,000 from
September to November period. The number of people claiming
jobseeker's allowances has fallen for 29 consecutive months in
March. It fell by 20,700 from February, but smaller than an
expected decline of 29,500.
The claimant count fell to 2.3 percent in March, in line with
expectations, from 2.4 percent in February.
Traders await the Spring meetings of the World Bank Group and
the International Monetary Fund, due later in the day. Reports on
U.S. consumer price inflation, consumer sentiment and leading
economic indicators are also in focus, for clues on the timing of a
Fed rate hike.
In the Asian trading, the pound held steady against its major
rivals.
In the early European trading today, the pound rose to more than
a 4-week high of 1.5035 against the U.S. dollar and an 8-day high
of 178.71 against the yen, from early lows of 1.4915 and 177.43,
respectively. If the pound extends its uptrend, it is likely to
find resistance around 1.52 against the greenback and 180.50
against the yen.
Pulling away from an early near 2-week low of 1.4264 against the
Swiss franc, the pound climbed to 1.4320. On the upside, the pound
is likely to find resistance around the 1.47 area.
Data from the Federal Statistical Office showed that Swiss
retail sales declined for a second straight month in February,
marking its biggest annual fall on record. Retail sales dropped an
adjusted 2.7 percent year-on-year following a 0.5 percent drop in
January. In December, sales grew 1.8 percent from a year ago.
On a month-on-month basis, retail sales decreased 1.2 percent in
February after a 2.6 percent drop in January. In December, sales
rose 1.5 percent.
Against the euro, the pound edged up to 0.7195 from an early low
of 0.7219. The pound may test resistance near the 0.70 region.
Looking ahead, Canada CPI for March and retail sales data for
February, U.S. CPI for March, U.S. Reuters/University of Michigan's
preliminary consumer sentiment index for April and U.S. leading
indicators for March are set to be published in the New York
session.
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