Forex: UK Jobless Claims increase in March contrary to expectations

Important: This page is part of archived content and may be outdated.

UK jobs data were released this morning slightly worse that predicted, resulting in the Pound to weaken against the Euro and the US Dollar. The Claimant Count saw an increase of 0.7K for the month of March, despite a prediction of a decline by 3.1K . February had shown a fall in claimants by 10.2K . The March reading was a surprise since the overall three month ILO unemployment rate dropped to 7.8% versus the previous 8%.

The data compiled by UK National Statistics is a good indication of the employment situation in the country. Although unemployment is a lagging indicator it is an important signal of economic health.

After release of the news at 0930GMT Sterling was very volatile against the US Dollar and has since dropped over 40 pips from 1.6294 1.6252. EURGBP gained over 20 pips to rise to 0.8920 from its lowest point at news time at 0.8897.