The GBP/USD continues rising; the demand for the Pound is supported by the statistics and the USD weakness.
On Thursday afternoon, the British Pound continues growing against the USD. the current quote for the instrument is 1.2940.
The current growth started yesterday, after the United Kingdom had published the statistics. The Unemployment Rate in the country decreased from 4.6% in April to 4/5% in May. The current reading of the indicator is the lowest over the last 42 years. This is where the Pound started its rally.
The components of the repost showed that 74.9% of the country’s population are employed, and that’s a pretty strong number even in British terms.
However, there is a bad apple here that spoils the whole barrel. The Average Earnings including Bonus expanded by 1.8% over the last three months after adding 2.1% the quarter before. This is a nominal income and its behavior doesn’t stir alarm yet, but if this tendency continues, it may give a cause for reflection. As a result, the drawdown in the indicator appeared to be the highest over three and half years.
The market took the statistics as the signal to keeping the BoE’s key rates stable in 2017 and continued buying the Pound. The “weak USD” factor is still in favor of “bulls”.
Today, the Bank of England is going to publish the Credit Conditions Survey, which may show some slowdown due to the low economic activity because of the seasonal factor.
RoboForex Analytical Department