Chart: WorldWideMarkets Alpha Trader
The pound rallied sharply from 1.5670 to 1.5746 (+76 pips) after the release of the UK Employment data. Stops were triggered at the 1.5715 level.
The UK April Unemployment Rate came in as expected at 5.5% in line with most analysts' forecast citing the weaker 1st QTR GDP. However, the Claimant Count and Wages came in slightly better than expected which pushed sterling higher.
LFS Unemployment Rate 5.5% in Jan-March / Claimant Count Falls to 12,600 / March Total Average Weekly Earning 3M y/y, 1.9% vs 1.7% in Feb/ March Average Weekly Earnings Ex-Bonus 2.2% vs. 1.9% in Feb. (08:30 GMT)
The market was moving sideways from the late New York session until the European open awaiting the jobs data. The market now awaits the next important segment of UK news which is the publication of the Bank of England's May Inflation Report which will provide new unemployment projections scheduled at 9:30 GMT.