UK unemployment falls, GBP rises
Yesterdays strong employment figures from the UK gave GBP a boost, particularly against USD with cable toying with the 1.5800 mark. The number of people out of work fell by 24,000.00 in the three months to July. The headline unemployment rate thus fell from 7.8% to 7.7%. The claimant count, the number of people claiming job seeker’s allowance, fell by 32,600.00 in August.
Conversely, in Australia, last nights labor report showed that the economy lost more than 10,800 jobs last month. Markets were expecting a rise of 10,000. The disappointment was reflected in AUD weakening against all majors with GBP/AUD now back above 1.70.
At 12.40 today we see Mario Draghi, the president of the European Central Bank, speaking on how the ECB observes the current European economy. The President’s comments may determine the short-term trend for the Euro.
Similarly, Mark Carney, the Bank of England Governor, will be speaking this morning at 10am. In a non-routine conference, Carney will be effectively defending his forward guidance policies to UK lawmakers. As with all central bank heads, Mr Carney’s comments can significantly impact the direction of GBP – based on if the market determines his comments to imply interest rates will rise sooner or later.